Bangko Sentral, Bsp, Central Bank, Government Borrowings, Government Debt, Debt Monetization, Printing Money, Francisco Dakila, P540 Billion Loan, Monetary Policy, Covıd-19 Spending, Pandemic, Bangko Sentral Approves P540 Billion Loan To National Gov’T | Abs-Cbn News

Bangko Sentral, Bsp

Bangko Sentral approves P540 billion loan to National Gov’t

10/1/2020 2:05:00 PM

Bangko Sentral approves P540 billion loan to National Gov’t

The BSP announced on Wednesday that the government requested the new loan, which would be settled on or before Dec. 29 this year at zero interest. “The action of the BSP to provide direct provisional advances to the national government is critical and necessary as the implementation of the lockdown protocols across the country impeded the national government’s revenue streams," said BSP deputy governor Francisco Dakila. 

Gordon furious: What? Gov’t allows 35-yr-old Chinese to stay in PH as retirees? Signal no. 1 up in NCR, nearby provinces as 'Pepito' heads for Luzon Metro Manila now in Signal No. 1 due to tropical depression Pepito

The BSP acknowledged that the central bank lending money to the government, or debt monetization, would be worrisome in normal times because of its potential inflationary effects and its implication on the perception of the central bank's independence. 

"However, just like in other countries, the ongoing pandemic has required what we can call a whole of government effort in order to fight the impact of the pandemic on the economy," Dakila said. The Deputy Governor added that "timing is of the essence" as delays in granting the funds needed by the government could have hampered efforts to address the ill effects of the pandemic and facilitate the recovery of the economy. 

He added that there were "sufficient safeguards" as the BSP Charter and the Bayanihan to Recover as One Act or Bayanihan 2, limit the amount of provisional advances that could be granted by the central bank to the government. According to Bayanihan 2, the central bank cannot lend the government more than 10 percent of the government's average income from 2017 to 2019. The loans are also supposed to be paid within 1 year.

Meanwhile, the BSP said the Bureau of Treasury had already fully settled the previous P300 billion loan granted to it by the central bank. The government has been borrowing heavily as revenues shrank and expenditures climbed because of the COVID-19 pandemic. 

As of end-August, the Philippines’ debt hit P9.615 trillion, which was 21 percent higher compared to the same month last year. Read more: ABS-CBN News Channel »

DOH short of P10 billion for COVID-19 vaccines

The shortfall comes despite President Rodrigo Duterte's repeated claims that a vaccine is the 'only salvation' from the pandemic

Paktay na! Imbes ang gobyerno magpautang sa tao, baliktad yata! tonyocruz This country is being robbed in broad daylight.

Duterte seeks P540-billion advance from Bangko Sentral for pandemic responseThe government says it will pay the central bank in full by the end of 2020 at no interest. The Monetary Board will discuss the matter. Last resort? Parang kelan lang yung humihingi ng budget tapos ano nanaman yan.. Inuubos na talaga kaban ng bayan at di mo alam saan napupunta. 👁____👁

Duterte seeks P540-billion advance from Bangko Sentral for pandemic responseThe government says it will pay the central bank in full by the end of 2020 at no interest. The Monetary Board will discuss the matter. Last resort? Parang kelan lang yung humihingi ng budget tapos ano nanaman yan.. Inuubos na talaga kaban ng bayan at di mo alam saan napupunta. 👁____👁

BSP says no threat of PH defaulting on loansThe country is not in any danger of being unable to pay back its loans amid the pandemic, the Bangko Sentral ng Pilipinas assured on Wednesday.

National government to borrow another P540B from BSPMANILA, Philippines—The Philippine government has asked for a new loan of P540 billion from the central bank —the maximum allowed by the previous stimulus law meant to fight the coronavirus daxINQ 🐘💩💩💩

US casino giant Caesars to buy UK betting group William HillThe deal between Caesars Entertainment and William Hill worth £2.9 billion ($3.7 billion, 3.1 billion euros) is subject to shareholder approval.

Mandaue City gov’t readies school supplies for kindergarten pupilsAtty. John Eddu Ibañez, the executive secretary of Mayor Jonas Cortes, said that the city allocated 15 million pesos for this purpose.