Philippines' foreign borrowings near $4 billion in Q2

MANILA, Philippines — The Philippines' central bank Monetary Board approved $3.90 billion in public sector foreign borrowings from April to June 2024, a 43% increase from the $2.73 billion approved in the same time period last year.

The borrowings, which require approval from the Bangko Sentral ng Pilipinas under the Constitution, consist of a $2 billion bond issuance and three project loans amounting to $1.90 billion. 

“These borrowings will fund the National Government’s general budget financing and financing/refinancing of assets in line with the Republic of the Philippines’ Sustainable Finance Framework (US$2.0 billion) and transport infrastructure projects (US$1.9 billion),” said the BSP in a statement. 

The uptick in the second quarter foreign borrowings follows a decline in the first quarter when the Monetary Board greenlighted $2.86 billion in foreign loans, nearly half the $5.56 billion approved in the first quarter of 2023.

The Philippines' total external debt stoof at $128.7 billion as of end-March 2024, up 2.6% from $125.4 billion at the end of 2023. Despite the increase, the BSP had said the country's external debt ration remains at "prudent levels," recording at 29% of the gross domestic product.