For the period July to September 2022, the Monetary Board (MB) approved one (1) public sector foreign borrowing of US$178.10 million.
This is 96 percent lower than the borrowings approved in the same period in 2021 amounting to US$4.66 billion and 95 percent lower than the approvals in the second quarter of 2022 amounting to US$3.54 billion.
This borrowing of the Republic of the Philippines will fund the National Government’s (NG) multisectoral nutrition project.
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 its 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 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 commencement of actual negotiations.
