PH to raise foreign borrowings in 2018
The Philippines will source over a fourth of its debt from foreign sources for the year.
President Rodrigo Duterte’s economic managers announced that they will be borrowing more funds from abroad in 2018, with 26 percent of fresh loans to be sourced offshore.
This 74-26 percent borrowing mix, although still in favor of peso-denominated loans, departs from the 80-20 percent breakdown followed over the past few years.
The Philippine government is looking to spend P3.31 trillion in 2018, versus P2.79 trillion in revenues. This will keep the budget deficit at 3 percent of gross domestic product.
Despite the change in the borrowing mix, the debt burden is seen to continue its downtrend while helping the economy grow by between 7-8% yearly.