MANILA, Philippines — The Philippines jacked up its borrowings from offshore creditors by almost 40 percent to $3.8 billion in the third quarter, the Bangko Sentral ng Pilipinas (BSP) said.
Latest data from the central bank showed that the Monetary Board approved $3.81 billion in public sector foreign borrowings from July to September.
The amount is 36 percent higher than the $2.81 billion recorded in the same period last year.
This brought the public sector foreign borrowings to $10.58 billion in the nine-month period.
According to the BSP, the bulk of the third quarter borrowings consisted of one bond issuance worth $2.5 billion.
“The bond issuance will fund the government’s general budget financing and refinancing of assets in line with the country’s sustainable finance framework,” the BSP said.
The borrowings also consisted of $778.59 million worth of a single program loan on economic recovery, environmental protection and climate resilience.
The remaining $535.97 million will cover projects on maritime safety and support ($448.41 million) and agrarian reform ($87.56 million).
All foreign loans to be contracted or guaranteed by the government need prior BSP approval under the 1987 Constitution.
Likewise, all foreign borrowing proposals of the government, government agencies and government financial institutions have to be submitted for approval-in-principle by the Monetary Board before commencement of actual negotiations, as mandated under Letter of Instruction 158 issued in January 1974.
“The BSP promotes the judicious use of the resources and ensures that external debt requirements are at manageable levels, to support external debt sustainability,” it said.
The Philippines borrows heavily from foreign and domestic creditors to finance the country’s budget deficit as it spends more than what it actually earns.
Currently, the country’s outstanding debt has eased to P15.55 trillion as of end-August.