The Philippine central bank approved the purchase of PHP 300 billion government securities to provide extra lifeline to the national government.

The Monetary Board authorized the Bangko Sentral ng Pilipinas, or BSP, to purchase government securities from the Bureau of Treasury. The central bank will buy securities with a maximum repayment period of six months.

The fund raised through the agreement will be used to support the National Government’s programs to counter the impact of coronavirus disease 2019.

“This arrangement is the most cost-effective way for us to provide an extra lifeline to the national government to support the programs to fight this pandemic,” National Treasurer Rosalia de Leon, said.

BSP Governor Benjamin Diokno said, “We continue to support the government’s initiatives and objectives during the enhanced community quarantine (ECQ).”

This additional amount is intended to provide support for those most affected by the ECQ, especially in Luzon, for the next 60-90 days, Diokno said.

The material has been provided by InstaForex Company – www.instaforex.com