PH Needs Higher Financing Amid Pandemic

The Philippine government eyes to tap on euro, yen and yuan markets to address the existing economic issues brought about by the COVID-19 pandemic.

The government will borrow P3.03 trillion for 2021, with P442.4 billion of which will be from foreign sources. These include project loans from bilateral partners and other programs.

Meanwhile, P286 billion will be intended for issuance of offshore bonds for commercial borrowings.

National Treasurer Rosalia de Leon said that the mentioned currencies are sources of external financing that might help to stabilise the economy.

Before the year 2020 ended, a $2.75 billion was ventured by the Philippine government for dollar bond market. Also last year, 1.2 billion euros were raised by the Philippine government from euro-dominated bonds.

Meanwhile, according to the latest treasury data, the Philippine government paid P888.69 billion debt from January to November of 2020. P533.61 billion of which were for principal amortization and P355.08 billion were payments for unsettled interests. (MLC)