THE Philippine government has sought another P540 billion or $11.24 billion in financial support from the central bank, the third time it has done so this year, to mitigate the impact of the coronavirus pandemic, its treasurer said on Tuesday.
The funding support the government was requesting from the Bangko Sentral ng Pilipinas (BSP) will be in the form of a loan, National Treasurer Rosalia de Leon said.
In October, the BSP agreed to lend the government P540 billion. That followed a decision in March to buy P300 billion of government securities to help handle the fallout of COVID-19.
The central bank has been aggressive in easing monetary policy, slashing its key rate by 200 basis points cumulatively this year, to reduce pandemic’s economic damage, but fiscal support from the government has been limited.
The Philippine government is targeting a 6.5 percent to 7.5 percent economic growth in 2021 after a projected 8.5 percent to 9.5 percent contraction this year. (ABS-CBN News)
