The Bangko Sentral ng Pilipinas (BSP) recently announced a significant increase in approved public sector foreign borrowings, signaling the government’s push to secure funding for critical infrastructure and social programs.
At the same time, the central bank is proactively looking ahead, issuing a timely reminder for entities to submit their foreign borrowings plans for the coming year, underscoring its dual role in managing both current and future debt obligations.
New foreign borrowings to fund public projects
The BSP’s Monetary Board gave its stamp of approval for a total of US$4.89 billion in foreign loans during the second quarter of 2025. This figure represents a notable increase of US$0.99 billion, or 25.38% from the US$3.90 billion approved in the same period last year. This substantial influx of funds is earmarked for a diverse range of high-impact projects designed to modernize key sectors of the economy.
According to the BSP, the approved borrowings consist of eight (8) project loans valued at US$4.14 billion and three (3) program loans amounting to US$0.75 billion. These medium- to long-term loans will be used to finance a wide array of government initiatives.
The projects range from essential infrastructure like road and rail transport and flood control management to crucial social services, including climate resilience, health services, and civil service modernization. This strategic allocation highlights the government’s focus on bolstering both physical and institutional foundations to support sustainable economic growth.
The second-quarter approvals bring the total approved foreign borrowings for the first half of 2025 to US$11.18 billion. This figure, set against the full-year total of US$13.68 billion for 2024, demonstrates a consistent and substantial reliance on foreign funding to drive the nation’s development agenda.
The BSP’s approval is a crucial step in this process, as all foreign borrowing proposals from the national government, its agencies, and financial institutions must first receive the Monetary Board’s green light. This constitutional mandate, as stipulated in the 1987 Constitution and Letter of Instructions No. 158, ensures that the country’s foreign debt remains manageable and aligned with its debt-servicing capacity.
BSP sets deadline for future borrowing plans
In a forward-looking move, the central bank has also issued a crucial reminder to concerned entities to submit their Foreign Borrowings Plan (FBP). The deadline for the submission of these plans, which cover the fourth quarter of 2025 and the entirety of 2026, is September 30 of this year.
FBPs shall be submitted to the BSP, through the International Operations Department, via the appropriate e-mail address:
- For public sector loans/borrowings: iod-iog1@bsp.gov.ph
- For private sector loans/borrowings: iod_loans@bsp.gov.ph
Alternatively, respondents can also submit their FBPs through the following online form:
This requirement applies to all “resident entities” — a term defined to include Philippine citizens, permanent residents, and corporations organized under local laws — that plan to secure medium- and long-term foreign loans from non-residents or issue debt instruments payable in foreign currency.
This planning requirement is a vital component of the BSP’s regulatory framework, outlined in the Manual of Regulations on Foreign Exchange Transactions (FX Manual). 1 By collecting these plans, the central bank can effectively determine the economy’s foreign funding requirements for the upcoming year.
This proactive approach allows the BSP to regulate foreign loans and ensure that the country can service its foreign debt 2 in an orderly and sustainable manner, protecting the economy from potential financial instability.
To facilitate this process, the BSP has provided multiple submission channels. Entities can download the standard reporting form, Annex D.3 (Medium and Long-term Foreign Borrowings Plan), from the official BSP website. They can then submit the completed forms via email to the appropriate International Operations Department addresses, with separate addresses designated for public and private sector borrowings.
Additionally, respondents have the option of submitting their FBPs through a secure online form. The BSP assures that all data submitted is protected by strict confidentiality rules and will be used exclusively for internal purposes, in line with Section 23 of Republic Act No. 7653.
The recent increase in approved foreign borrowings, coupled with the BSP’s diligent planning for future debt, paints a picture of a nation strategically leveraging international finance to fuel its development while simultaneously upholding its mandate to maintain sound financial health.
The central bank’s actions underscore its pivotal role in balancing the need for capital with the imperative of responsible debt management, laying a stable foundation for the country’s economic future.
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[1] Section 22.7 of the FX Manual, as amended
[2] Section 22 of the FX Manual, as amended
