Bayanihan 2 has sufficient funds: national treasurer

National Treasurer Rosalia de Leon

MANILA – The government’s additional stimulus package, the Bayanihan to Recovery as One Act, which was enacted on September 11, has sufficient funding, said National Treasurer Rosalia de Leon.

“Bayanihan 2 (is) sufficiently covered by debt service, savings and additional income,” she told reporters in a Viber message on Monday.

In addition to loans and additional income, Bayanihan 2 authorizes the Bangko Sentral ng Pilipinas (BSP) “to make additional direct provisional advances with or without interest to the national government to finance expenses authorized by law that will address and respond to Covid-19 (coronavirus disease 2019) situation ”.

He said the additional funding is available “provided that these additional direct interim advances do not, taken together, exceed ten percent (10%) of the average national government income for the fiscal year 2017 to 2019” .

The BSP cash advance is expected to be used within two years of Bayanihan 2 coming into effect and “must be repaid by the end of one year” when it has been used.

“We have proposed (a) a higher (borrowing) ceiling to allow NG (national government) to benefit from the BSP facility to fund needs against Covid and pursue rapid recovery,” de Leon added.

BSP has already provided PHP 300 billion in funding to NG through a buyout agreement.

Under the deal, the funding would be used to purchase government securities, which can be repaid within three months.

The repayment period was granted an additional three months.

The new Central Bank Law, or Republic Law (RA) No. 7653, authorizes the BSP to lend to the NG an amount equivalent to 20% of the NG’s average income over the past three years, to date about 540 billion PHP. . (ANP)

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