Manila: The Bangko Sentral ng Pilipinas (BSP) announced a significant decline in approved foreign borrowings by the government during the third quarter of the year. The central bank revealed that the Monetary Board approved USD1.10 billion worth of proposed public sector foreign borrowings, marking a 71.13 percent decrease from the USD3.81 billion approved in the same period last year.

According to Philippines News Agency, the foreign borrowings consist of medium- to long-term maturities and include two loans designated for social protection projects. The total approved public sector foreign borrowings for the first nine months of the year amounted to USD12.28 billion.

The requirement for prior approval of foreign borrowing proposals by the national government, government agencies, and government financial institutions, as well as loans to be guaranteed by the national government, is mandated by law. This process ensures that the country's foreign debt remains manageable, aligning with the BSP's responsibilities.