The Philippines will source more borrowings locally next year than it earlier expected due to tight global credit conditions, raising its domestic borrowings by 20 percent to P386.5 billion ($7.9 billion).

Finance Secretary Margarito Teves told a Senate hearing the government expects to source 76 percent of its borrowing requirements locally next year and the rest from overseas, compared with a 74-26 debt mix it announced in September.

The government will borrow an equivalent of P123.4 billion from official development assistance sources and the overseas debt market, nearly 7 percent higher than its estimate in September.