October 25, 2025 | 12:00am
MANILA, Philippines — The Philippines reduced its borrowings from offshore creditors by 71 percent in the third quarter as fewer foreign loans were secured for government projects, the Bangko Sentral ng Pilipinas (BSP) said.
Latest data from the central bank showed that the Monetary Board approved only $1.1 billion worth of proposed public sector foreign borrowings from July to September, a steep 71.13-percent decline from $3.81 billion in the same period last year.
In a statement, the BSP said the approved borrowings all have medium to long-term maturities, consisting of two loans for social protection projects.
From January to September, total public sector foreign borrowings reached $12.28 billion, 16 percent higher than the $10.58 billion in the nine-month period a year ago.
Under Philippine law, all foreign borrowing proposals by the national government, its agencies and government financial institutions, as well as loans guaranteed by the national government, must first be approved by the Monetary Board.
Likewise, all foreign borrowing proposals of the government, government agencies and government financial institutions have to be submitted for approval-in-principle by the Monetary Board before commencement of actual negotiations, as mandated under Letter of Instruction 158 issued in January 1974.
The central bank said this requirement is in line with its mandate to ensure that the country’s foreign debt remains manageable.
The Philippines borrows heavily from foreign and domestic creditors to finance the country’s budget deficit as it spends more than what it actually earns.
Currently, the country’s outstanding debt has eased to P17.47 trillion as of end-August from P17.56 trillion as of end-July.