Economic managers have approved a $2.2 billion foreign borrowings for 2014, bulk of which are accounted for by loans to be taken through official development assistance.
ODA loans or those to be sourced from multilateral lenders like the World Bank and the Asian Development Bank, among others, were set at $1.2 billion while foreign commercial borrowings were set at $1 billion, same as the program for this year.
However, National Treasurer Rosalia de Leon said the $1 billion set for commercial borrowing was set “because we just want to have several options” for financing.
She said the government still needs the approval of the Bangko Sentral ng Pilipinas’ policy-making Monetary Board before it can tap foreign fund sources.
She also stressed that decision to push through with dollar-denominated foreign debt “depends on market condition.”
“Everything hinges in terms of requirements, and appetite,” she in a phone interview.
President Benigno Aquino III approved on Thursday the P2.268 trillion 2014 national budget, 13.1 percent higher than the P2.006 trillion budget for this year.
It will be submitted to Congress on July 23, a day after the State of the Nation Address.
De Leon stressed that the government will focus on the domestic fund sources for its financing needs since liquidity remains high onshore.
“For this year we’re not considering any foreign borrowing,” she added.
The government issues treasury bond and treasury bills to fund programs on top of the revenues it generates.*PNA