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