Bangko Sentral ng Pilipinas lends another ₱540 billion to the Philippine Government to be used as funds for the country’s pandemic response.
MANILA — BSP Governor Benjamin Diokno confirms the transaction through a text message on Thursday. He says the Monetary Board approved the Duterte administration’s request last 01 July.
The new loan is said to have “the same terms and conditions” as the Government’s previous line of credit, which has been extended to be repaid in January. The Government was able to repay this amount in June.
Budget department data revealed that the Government is drafting an interest to borrow ₱1 trillion from BSP. However, analysts contested that approving this might cause the bank’s intention of preventing monetary inflation to be put at risk.
They reasoned that cash from Government borrowings could influence the financial system and hike up prices.
The BSP argued in response that its lending to the Government has become “critical and necessary” as a solution for the state’s exhausted revenue pool due to weak economic activity since the pandemic. (HMP/The MiNT)