At the first Conference of the State Finance Secretaries held in November 1997, the issue of government guarantees was deliberated upon at length and the view taken was that, in the interest of prudent financial management and the credibility of the guarantees issued, there was a need for a policy on guarantees for each State Government within certain national parameters.
This is consistent with our intended strategic exit and gradual withdrawal of extraordinary liquidity interventions. Earlier, the BSP's provisional advances to the national government of 10.3 billion US dollars in 2020 and 2021 was reduced to 5.7 billion US dollars in January 2022. The National Government fully settled these advances last May 20, ahead of maturity on June 11, 2022.