Philippine central bank to buy nearly 10 bln USD of government bonds

The central bank of the Philippines (BSP) is ready to increase the purchasing value of government bonds to 500 billion PHP (9.846 billion USD) in order to provide extra lifeline to the government amid the COVID-19 pandemic, said a banking official.

01, Apr. 2020

Photo by Robin Kutesa on Unsplash
Photo by Robin Kutesa on Unsplash

MANILA, VNA - The central bank of the Philippines (BSP) is ready to increase the purchasing value of government bonds to 500 billion PHP (9.846 billion USD) in order to provide extra lifeline to the government amid the COVID-19 pandemic, said a banking official.

According to BSP Governor Benjamin Diokno, the central bank has been authorised to buy government bonds from the Bureau of Treasury with a maximum repayment period of six months.

The fund raised through this activity will be used to finance the government's programmes to counter negative impacts on the economy caused by the epidemic.

Diokno said that BSP will consider increasing the number of purchased government bonds in accordance with the government's needs in applying disease countermeasures.

From March 30, BSP has lowered the required reserve ratios for commercial banks and multi-purpose banks, helping "release" about 200 billion PHB to the monetary circulation system, and allow banks to approve more loans to boost the economy. - VNA