In an effort to assist the national government’s funding requirement for COVID-19-related programs and consistent with its liquidity enhancing policies, the BSP has also bought government securities in the secondary market, provided short-term provisional advances, and remitted 20 billion pesos in advance dividends to the national government.
In sum, the BSP has injected some Php2-trillion into the financial system, equivalent to 10 percent of 2019 GDP. The BSP’s policy measures complement the government’s expansionary fiscal policy stance to boost demand and limit the adverse effects of the COVID-19 pandemic.