The Bangko Sentral ng Pilipinas (BSP) paid $194.6 million of its short-term loans in July, reducing its liability from $1.023 billion to $829 million.

The BSP borrowed $500 million in March to prop up its foreign exchange reserves, which in July was revised higher to $40.17 billion from the previously reported gross international reserves (GIR) of $39.98 billion last August 7.

The National Government and the BSP use GIR to pay off debts. As of end-June, foreign currency loans, debts and securities amounted to $6.67 billion and $1.01 billion is maturing end of this month. Also as of June 30, this year, the central bank has over $707.5 million reserves with BIS, other central banks and the International Monetary Fund.

The BIS loan was the first short-term loan that the BSP tapped and by August and September last year, it borrowed an additional $400 million from other sources. The Switzerland-based BIS is an international organization for monetary and financial cooperation. (LCC)