The Bangko Sentral ng Pilipinas (BSP) has approved $4.89 billion in proposed public sector foreign borrowings during the second quarter of 2025, marking a 25.4 percent increase from the $3.90 billion cleared in the same period last year.

While the second-quarter rise was notable, the bigger jump occurred in the first quarter, when foreign borrowings more than doubled, surging from $2.87 billion in Q1 2024 to $6.29 billion in Q1 2025, or a 118.9 percent increase.

On track

Combined, total BSP-approved foreign borrowings in the first half of 2025 reached $11.18 billion, a 65.1 percent increase compared to $6.77 billion in the same period of 2024. This puts the country on track to exceed the $13.68 billion approved for the full year of 2024.

According to the BSP, the second-quarter approvals are composed of medium- to long-term loans that will finance government infrastructure and reform initiatives. These include eight project loans amounting to $4.14 billion and three program loans worth $750 million.

The loan proceeds are earmarked for road and rail transport, flood control, climate resilience, healthcare and civil service modernization.