BSP Approves ₱540 Billion Loan Requested by the Government

On Thursday, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno announced that the Monetary Board approved another loan amounting to ₱540 billion which was requested by the government’s Bureau of Treasury.

“We just renewed the assistance to the government,” expressed Diokno. This is the fourth zero-interest loan that the national government has secured from the BSP.

The funds will be allocated to bolster the cash reserves for the country’s pandemic response. Diokno further elaborates that the new variants of COVID-19 could prompt a return to stricter lockdowns and threaten economic recovery.

President Duterte has constantly reiterated the there is a lack of funds, particularly for emergency response measures. As of May, the country’s unpaid debt had already gone over ₱11 trillion after additional borrowings were made to address this issue.

Earlier, in March 2020, the BSP also loaned ₱300 billion to the national government which was followed by another ₱540 billion a few months later in September.

Source: CNN PH