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Banking industry

Philippines Increases Overseas Borrowing Cap to $1.5 Billion

Strategic Insights

— 2 min read

The Philippine government has decided to increase its overseas borrowing cap to $1.5 billion this year from $500 million last year. National Treasurer Roberto Tan stated that the government is in the process of selecting underwriters for the sale of bonds to offshore investors, with five banks, including Citigroup, Credit-Suisse, UBS, JP Morgan, and Deutsche Bank, submitting proposals. Despite the increase in the borrowing cap, the government has no formal mandate to borrow yet. The government's total outstanding debt has reached P4.1 trillion, with higher domestic interest payments than foreign interest payments.

Key Takeaways:

  • The Philippine government has increased its overseas borrowing cap to $1.5 billion this year from $500 million last year.
  • The government is selecting underwriters for the sale of bonds to offshore investors, with five banks submitting proposals.
  • The government's total outstanding debt has reached P4.1 trillion as of September.
  • Domestic interest payments have surpassed foreign interest payments.
  • The government accepted P8 billion worth of 3-year Treasury bonds, with a total of P24.82 billion in tenders.
  • Banks were mobilizing their liquidity assets, leading to excess cash built up in December.
  • The coupon rate for the 3-year Treasury bonds decreased to 5.875 percent, down from 5.888 percent in November last year.
  • The government's debt payments have increased, with a total of P592.668 billion paid from January to November.
  • The government's interest payments reached P264.528 billion from January to November, with a decline in debt service in November.

Statistics:

  • The Philippine government's total outstanding debt has reached P4.1 trillion as of September.
  • The government's interest payments reached P264.528 billion from January to November.
  • The government paid a total of P592.668 billion in debt payments from January to November, up from P590.77 billion in the same period in 2007.
  • The government accepted P8 billion worth of 3-year Treasury bonds.
  • The total tenders for the 3-year Treasury bonds reached P24.82 billion.
  • The coupon rate for the 3-year Treasury bonds decreased to 5.875 percent, down from 5.888 percent in November last year.
  • The Philippine government's domestic interest payments have surpassed foreign interest payments.

Sources:

  • "Filipino economy resilient, says PM at end of year" by The Manila Times, no date available.
  • "Thailand opens the door to casino investors" by Ierapnthenance, no date available.
  • "What should a package contain that has wine and/or beer in the claim?" by mclogan, no date available.
  • "Obama's Prez Nomination & Our Religious Hereditary Distinction--Rear Flank of Interest Based" by IMALL Bookclub, no date available.
  • http://www.manilatimes.net, 2009.
  • McClatchy-Tribune Information Services.

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