The Philippines: BSP grants another PHP540B loan to national government

  • The Bangko Sentral ng Pilipinas has granted the government a new loan of PHP540bn to augment its budgetary needs as the coronavirus pandemic remains to be in effect.
  • BSP Governor Benjamin Diokno on 6 Jan 21 said the Monetary Board granted the advance credit on 28 Dec 20.
  • “The government needs it. Because of COVID-19, revenues went down and are hard to come by, but, at the same time, there are huge expenditure demands on the part of the national government,” he said.
  • “In the meantime that they do not have the taxes and the cash to pay for the COVID-related programs then we lent them PHP540bn,” Diokno added. Diokno said the loan will have zero interest.
  • This is the second time the BSP has agreed to lend the government PHP540bn since it approved a loan request for the same amount in Oct 20.
  • Diokno added that the BSP has also remitted to the national delivery a dividend of PHP40.5bn, which he said, is about 30% of the total dividends of the whole government corporations.
  • In Mar 20, BSP unveiled a massive stimulus program for the national government’s fight against the coronavirus pandemic, saying it would lend as much as PHP300bn to the Bureau of the Treasury for this purpose.

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