Funds lent by the Bangko Sentral ng Pilipinas to the government will have to be settled in 11 days, but the Duterte administration is not intending to borrow from the central bank until next year.
A “request for new arrangement” with the BSP will be filed “next year” as part of the government’s funding program, National Treasurer Rosalia de Leon said.
This means that unlike in September, there would be no immediate request to borrow from the central bank once 540 billion pesos in advances mature on December 29, three days before the New Year. At which point, government would have to return the entire amount.
The central bank has become a critical cash source for the Duterte administration amid falling tax receipts and a costly pandemic response. Prior to the 540 billion pesos in advances, BSP lent 300 billion pesos by investing in three-month Treasury securities last March. That investment was renewed until September.