Facebook

PH to borrow more locally than abroad

Rappler.com

This is AI generated summarization, which may have errors. For context, always refer to the full article.

With the domestic market awash in cash, the government hopes to seize the opportunity to borrow more locally

MANILA, Philippines – The Philippines wants to weigh the borrowing mix more heavily in favor of local sources, with up to 80% coming from the domestic market and 20% from abroad disclosed the country’s finance chief. 

That 80% would be up from the 75% the Aquino administration originally planned to borrow from domestic sources for the year.

The government is leaning towards borrowing more within the country because the domestic market is awash with cash, explained Secretary Cesar Purisima at the sidelines of a forum organized by the Foreign Correspondents Association of the Philippines on Friday, March 23. 

Currently, the government plans to borrow $4.02 billion from foreign sources with $1.77 billion coming from program and project loans and $2.25 billion coming from the commercial debt market.

Meanwhile, government would borrow roughly $12.4 billion (or P529.5 billion) from local sources. The state borrowings are intended to plug the budget deficit.

Last year, government underspending resulted in a lower budget deficit of P191.6 billion, lower than the original target of P300 billion. – Rappler.com 

Add a comment

Sort by

There are no comments yet. Add your comment to start the conversation.

Summarize this article with AI

How does this make you feel?

Loading
Download the Rappler App!