BSP's Monetary Board approved $14.49-B gov’t foreign borrowings in 2023

The Monetary Board (MB) approved $14.49-billion worth of foreign borrowings in 2023 to reflect a 40.36% increase to the approvals made the previous year due mainly to higher program and project loans, the Bangko Sentral ng Pilipinas (BSP) reported Monday.

Data released by the BSP showed that the MB gave the go signal for seven public sector medium-to-long term (MLT) foreign borrowings worth $3.32 billion in the fourth quarter, marking a 65.80% increase from the $2.0-billion MLT approved foreign borrowings the same period in 2022.

Under the Philippine Constitution, the BSP — through the MB — is required to approve all foreign loans entered into by the government. All foreign borrowing proposals also need to be approved in principle by the MB before negotiations start.

For the full-year 2023, the MB approved 24 MLT foreign borrowings — two bond issuances worth $4.00 billion, 12 project loans worth $5.67 billion, and 10 program loans worth $4.82 billion.

Compared with the previous year, program loans grew to $4.82 billion in 2023 from $0.87 billion, while project loans rose to $5.67 billion from $4.68 billion. These more than offset the decrease in bond issuances which fell to $4.00 billion from $4.77 billion.

According to the BSP, the 2023 borrowings will finance the national government projects —  infrastructure worth $4.07 billion; general financing requirements worth $4.00 billion; economic recovery and development worth $3.07 billion; COVID-19 response programs worth $2.27 billion; and education worth $0.21 billion.

Latest data released by the Bureau of the Treasury (BTr) showed that the national government’s running debt balance stood at P14.51 trillion as of end-November 2023, up by 0.19% from P14.48 trillion as of end-October 2023.

Under the Medium Term Fiscal Framework of the current administration, the government targets to bring down the debt-to-GDP ratio to less than 60% by 2025, and further shrink it to 51.1% by 2028. — RSJ, GMA Integrated News