Philippines govt to borrow $3.2 bn from foreign lenders
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The Philippines government plans to borrow as much as US$3.2 billion (Bt98 billion) from foreign sources next year, intending to use the proceeds to help fund development projects and programmes and settle maturing dollar-denominated obligations. National
De Leon said $1.5 billion to $2 billion of the borrowing programme next year was intended to be secured through the sale of government bonds in the international market.
Between $1 billion and $1.2 billion is intended to be borrowed from developmental lenders such as the Japan Bank for International Cooperation, the Asian Development Bank and the World Bank. Loans from these institutions are used to fund development projects and programmes such as infrastructure and subsidies to the poor.
The government needs to continue borrowing as expected revenues from tax collection and fees imposed by line agencies were seen to still fall short of the total expenditure requirements. Nonetheless, officials said the government’s budget deficit was on a declining trend.
De Leon said the amount of expected foreign borrowings for 2013 would constitute 20 per cent of the total amount that the government intended to borrow in 2013. The bigger share of 80 per cent will be domestic borrowings, which are usually done through the sale of treasury bills and bonds in the local market.
