Gov't to keep present borrowing program

Posted at 05/25/12 5:59 PM

MANILA, Philippines - The Department of Finance (DoF) wants to keep its present foreign and domestic borrowing plan, in anticipation of a spike in state spending for the rest of the year.

Finance Undersecretary Rosalia B. de Leon said the government will keep its remaining $750 million commercial borrowing program and the 75:25 financing mix, which favors local financing, "for now."

"We have to calibrate our funding requirement for second half of the year as the budget department had announced that they will further accelerate spending during the second semester," she said.

However, she did not rule out the possibility of reviewing the government's borrowing mix in upcoming meetings with other economic managers.

"Money is not a problem as of now, as you know the Bureau of Treasury is capable of rejecting those unreasonable bids at our weekly auction," she said.

At present, the government is keeping a close eye in developments in the local and overseas markets, especially with euro zone's problems.