The Philippines: Gov’t seeks PHP540bn advance from BSP

• THE National Government (NG) is asking the Bangko Sentral ng Pilipinas (BSP) for PHP540bn in additional financial assistance to help plug the widening budget deficit due to the coronavirus disease 2019 (COVID-19) pandemic.
• Mr. Diokno said the NG’s request will be formally submitted to the Monetary Board “soon.”
• The debt plan comes immediately after the Bureau of the Treasury repaid the PHP300bn it borrowed from the central bank in Mar 20 through a repurchase agreement of government securities.
• A pandemic relief law signed earlier in Sep 20 also temporarily raised the cap on advances the central bank can provide the government, while lengthening the repayment period to as long as two years.
• Republic Act (RA) 11494 or the Bayanihan to Recover as One Act allowed the BSP to lend 30% of its average revenue, an increase from the 20% limit under RA 7653 or The New Central Bank Act. This would allow the BSP to lend up to PHP850bn from the previous cap of PHP540bn.

External Link : https://www.bworldonline.com/govt-seeks-p540b-advance-from-bsp/