(File Photo)

The Monetary Board (MB) approved a total of US$4.66 billion public-sector foreign borrowings in the third quarter of 2021, 18.9 percent higher than the US$3.92 billion approvals in the same period in 2020.

These consist of one bond issuance amounting to US$3 billion, three project loans amounting to US$855.94 million, and two program loans amounting to US$800 million.

The MB said borrowings will fund the country’s general financing requirements of US$3.00 billion, reform programs on youth employment and financial sector amounting to US$800 million, disaster resilience for US$300 million, assistance to the agriculture sector of US$280 million, and emergency response amounting to US$275.94 million).

Under Section 20, Article VII of the 1987 Constitution of the Republic of the Philippines, prior approval of the Bangko Sentral ng Pilipinas (BSP), through the MB, is required for all foreign loans to be contracted or guaranteed by the Republic of the Philippines. Similarly, Letter of Instructions No. 158 dated 21 January 1974 also requires all foreign borrowing proposals by the NG, government agencies, and government financial institutions to be submitted for approval-in-principle by the MB before the commencement of actual negotiations. 

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