BSP to buy P300B government securities to soften Covid-19 impact

THE Monetary Board has authorized the Bangko Sentral ng Pilipinas (BSP) to purchase government securities worth P300 billion from the Bureau of the Treasury under a repurchase agreement with a maximum repayment period of six months.

The fund from the agreement will be used to support the National Government’s programs to counter the impact of the coronavirus disease 2019 (Covid-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 in a statement.

BSP Gov. 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.” (CSL)