BSP grants a new loan to NG – Manila Bulletin

The Bangko Sentral ng Pilipinas (BSP) approved another round of funding for the national government that aims to bolster the latter’s war chest for the coronavirus response.

BSP Governor Benjamin E. Diokno said that the Monetary Board approved a new interest-free loan of P540 billion for the Treasury Office, which will be used for budget support and to cover the growing budget deficit.

“In fact, we are pleased to help the national government steer the country on a gradual and sustainable path to recovery,” Diokno said during a media forum.

Diokno said this new tentative breakthrough is in line with the entire government’s efforts to recover from the pandemic-induced recession.

Since the global health crisis began in 2020, the BSP has already awarded P1.38 billion to the national government.

The central bank first granted a line of credit to the Treasury in March for the amount of P300 billion, which was fully paid off at the end of September.

The second provisional advance of P540 billion was extended again in October 2020 and was fully liquidated on December 18 last.

Previously, the Treasury reported that national government loans doubled between January and November last year to address the coronavirus disease pandemic.

Total indebtedness stood at a record P3.047 trillion at the end of November 2020, well above the P981.9 billion recorded in the same period last year.

Most of the financing corresponds to those of local origin, with a gross amount of P2.46 billion, while the balance of P582.63 billion corresponds to external financing. Economic managers have established a loan program of $ 3 trillion each for this year and next, and national fundraising accounts for most of the 75 percent through the issuance of treasury bonds (Treasury bonds). ), Treasury bills and RTB, among others.