$3.21 Billion Public Sector Loans Approved

Between October and December 2024, the Monetary Board approved six medium-to-long-term foreign borrowings by the public sector, amounting to $3.21 billion.

This figure represents a 3.35% decrease ($0.11 billion) compared to the $3.32 billion approved in the same period last year. I Photo: DPWH

This figure represents a 3.35% decrease ($0.11 billion) compared to the $3.32 billion approved in the same period last year.

For the entirety of 2024, 21 public sector foreign borrowings totaling $13.68 billion were approved. This includes two bond issuances ($4.50 billion), 11 project loans ($5.32 billion), and eight program loans ($3.86 billion).

The total is 5.56% ($0.81 billion) lower than the $14.49 billion approved in 2023, due to reductions in program loans and project loans, despite an increase in bond issuances.

The 2024 borrowings will fund the National Government’s needs, including:

• General financing requirements ($4.50 billion or 32.89%)

• Infrastructure projects, such as transportation ($4.35 billion or 31.79%)

• Policy reforms, environmental protection, and climate resilience projects ($2.98 billion or 21.79%)

• Education and healthcare programs ($1.36 billion or 9.94%)

• Agrarian reform and maritime safety projects ($0.49 billion or 3.59%)

As required by the 1987 Constitution, prior approval from the Bangko Sentral ng Pilipinas (BSP), through its Monetary Board, is necessary for all foreign loans contracted or guaranteed by the Republic of the Philippines.

The BSP ensures external debt levels remain manageable and supports external debt sustainability, as mandated under Letter of Instructions No. 158 (1974).