By CHINO S. LEYCO The national government’s stimulus loan from the Bangko Sentral ng Pilipinas (BSP) has zero interest rate, the Bureau of the Treasury said. National Treasurer Rosalia de Leon said that the central bank already transferred ₱300 billion to the national coffers, representing the government’s six-month lending program under the repurchase agreement. “It’s revenue neutral,” de Leon told reporters when asked about the interest rate, citing both BSP’s repurchase agreements or repo and deposit rates are zero. On Monday, the national government rejected all bids for its short-dated IOUs up for sale as rates rose sharply across all tenors. Average bids for the 91-, 182-, and 364-day Treasury bills increased to 3.500 percent, 4.775 percent and 4.00 percent, respectively. The auction was also under¬subscribed with total offers of only ₱17.2 billion. BSP Governor Benjamin E. Diokno said over the weekend that the central bank can give additional lending to the national government should the latter require more funds for its coronavirus disease (COVID- 19) fight. Sought for comment, de Leon said that they appreciate Diokno’s pronouncement and will keep his statement “in mind.” Last week, de Leon said that the national government will return the ₱300 billion to the central bank after six-months, as agreed by the BSP and the Treasury under their repurchase agreement. De Leon said that the government will use revenues from the delayed income tax payments and budget realignments now pending in the Congress to pay the BSP. To recall, the Bureau of Internal Revenue (BIR) extended the deadline of filing for income tax returns for one month from April 15 to May 15. The Department of Finance estimated that the income tax revenues alone could amount to about ₱145 billion. De Leon also added that the government is expecting funds from development assistance and will continue to tap the capital markets. The Monetary Board had authorized the purchase of government securities from the Treasury bureau under a repurchase agreement amounting ₱300 billion. Diokno said the agreement between the central bank and the na¬tional government has a maximum repayment period of six-months. "The fund generated from the said agreement shall be used to support the National Government’s (NG) programs to counter the impact of Coronavirus Disease 2019 (COVID-19)," Diokno said in a statement. De Leon said the arrangement is the most cost-effective way to provide an extra lifeline to the national government to support the programs to fight COVID-19 pandemic. Diokno said that the BSP will continue to fulfill its mandate with the benefit of the Filipino people in mind. “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," the central bank chief said.