BSP Has Fully Paid Its $500-million Loan
In 2005, The Bangko Sentral ng Pilipinas (BSP) has fully paid its $500-million loan by the full redemption of the remaining $200 million. $80 million and $120 million Floating Rate Notes which originally formed part of the $500-million term loan facility was settled by BSP. In 2010, the total principal payments of the public sector which includes the BSP70 percent of all principal amortizations during the year or amounted to $6.6 billion of which 69.7 percent or $4.6 billion were bond redemptions.
The central bank borrowed mainly to stock up on the country’s international reserves a total of $2.2 billion for liquidity purposes. The BSP has repaid part of the loans in 2009, document showed. It consists of $1 billion gold-backed loans or repurchases deposit from JP Morgan Chase and $1.2 billion securities-backed loans from the Bank for International Settlements (BIS). The BSP’s gross international reserves (GIR) totaled $44.24 billion at the end 2009. GIR reached $68.76 billion by the end of May this year.
BSP as a government independent institution borrowed almost $1.5 billion deposits and short-term loans in the middle of a global financial crisis in 2008. The BSP also borrowed $500 million short-term loans from the BIS in 2008.
