BSP greenlights bigger foreign loans

The Bangko Sentral ng Pilipinas (BSP) approved $6.29 billion (over P350 billion) in proposed foreign borrowings by the Marcos administration in the first quarter of 2025, more than double last year's figure, as the government frontloaded its debt in a cautious move to navigate volatile global markets and challenges stemming from US protectionist policies.

- BY DERCO ROSAL

According to the central bank data, the quarter-one approved foreign debt by the government jumped by $3.42 billion or over 119 percent from $2.87 billion in the same period in 2024.

The approved foreign borrowings, all with medium to long-term maturities, include $3.33 billion in bond issuances, $1.46 billion in project loans, and $1.50 billion in program loans.

"Proceeds of the bond issuances will be used to fund various budget requirements of the national government," the central bank said in a statement released Friday, April 25.

These include "socio-economic programs and projects, as well as settlement of maturing financial obligations."

The BSP explained that the program loans will fund economic and financial initiatives, while the project loans will fund transportation and infrastructure projects.