Gov’t to infuse P10-B in BSP in 2013

MANILA, Philippines – The national government will infuse an additional P10 billion capital into the Bangko Sentral ng Pilipinas (BSP) in 2013.

The government said a stronger and more adequately capitalized central bank is needed to sustain the stable macroeconomic and investment climate, especially since the country is targeting investment grade status.

Finance Secretary Cesar Purisima told reporters on the sidelines of the 2013 Philippines Investment Forum on Tuesday, March 12, the P10-billion infusion will bring the total capital raised by the Aquino administration for the BSP to P40 billion.

“We’re proud to be the only administration that has added capital to the central bank since its formation. We’ve added P10 billion in 2011, P20 billion in 2012, and another P10 billion this year to fully capitalize the central bank’s P50 billion. We believe a stronger capitalized central bank is good for the country. And if there’s a need to increase further, we will be very supportive but right now, what’s authorized is only P50 billion,” Purisima said.

The 1993 New Central Bank Act mandates a P50-billion recapitalization for BSP.

Purisma said the government directly infused funds into BSP through the national budget. He said despite the P20 billion capital infusion, the government managed to keep the country’s deficit-to-gross domestic product ratio at 2.3% in 2012. – Rappler.com