The Bangko Sentral ng Pilipinas (BSP) announced on Friday that for the period from July to September 2022, i.e. the third quarter of this year, the Monetary Board (MB) has approved only one public sector foreign loan of 178 .10 million dollars.
According to the BSP, this is 96% less than borrowings approved during the same period in 2021, which amounted to $4.66 billion, and 95% less than quarterly approvals in 2022, which s amounted to $3.54 billion.
PASB said this loan from the Republic of the Philippines will be used to finance the national government’s multi-sector nutrition project.
The project aims to support the delivery of nutrition and health care services at primary and community care levels to help reduce stunting, which is characterized by prolonged nutritional deficiency among infants and young children in 235 municipalities. countries that are known to have high incidence rates of poverty and malnutrition.
This nutrition project is also supported by the World Bank, which approved the loan.
It intends to deliver a package of nutrition-specific and nutrition-sensitive interventions across the various local government platforms.
This will also support behavior change campaigns for targeted households and communities to adopt behaviors essential to improving their nutrition, especially for women and children. This campaign also includes the need to always practice good hygiene.
Under Section 20, Article VII of the 1987 Constitution, the prior approval of the BSP, through the MB, is required for all foreign borrowings contracted or guaranteed by the Republic of the Philippines.
Similarly, Letter of Instruction 158 dated January 21, 1974 requires that all proposals for foreign borrowing by the national government, government agencies and government financial institutions be subject to the approval in principle of the Council of Ministers before the start of the actual negotiations.
PASB encourages the judicious use of resources and ensures that external debt requirements are at manageable levels, to support external debt sustainability, according to PASB.