BSP clears $4.89B in foreign borrowings for Q2, up 25% year-on-year

The Bangko Sentral has greenlit $4.89 billion in proposed public sector foreign borrowings during the second quarter of 2025, marking a 25.38 percent increase from the $3.90 billion approved in the same period last year.

The central bank said the approved borrowings are composed of medium- to long-term loans intended to support major government infrastructure and reform initiatives. These include eight project loans amounting to $4.14 billion and three program loans worth $750 million.

Proceeds from the borrowings will finance projects in road and rail transport, flood control, climate resilience, healthcare, and civil service modernization.

The Monetary Board’s approval brings the total amount of foreign borrowings cleared in the first half of 2025 to $11.18 billion. For comparison, the full-year figure in 2024 stood at $13.68 billion.

Under existing laws, all foreign loan proposals by the national government and its agencies, as well as those guaranteed by the Republic, require prior approval from the BSP's Monetary Board.

This policy is part of the BSP’s mandate to safeguard the sustainability of the Philippines’ external debt profile.