Brighter S&P outlook to help PH raise funds for Build, Build, Build – Diokno
The outlook revision means huge benefits for the economy.
S&P Global Ratings’ decision to revise upward its credit outlook on the Philippines to “positive” from “stable” is a huge step closer towards cheaper borrowing rates, which in turn will help maintain sound fiscal policies, according to Budget Secretary Benjamin Diokno.
“The economy stands to benefit greatly as it will potentially translate to lower borrowing rates to finance our priority programs and projects,” Diokno said in a statement.
This comes after the economic team of President Rodrigo Duterte revised its borrowing program to reflect a bigger share of foreign loans. The mix has been changed to 65-35 mix in 2018, coming from an 80-20 mix in favor of domestic sources.
The borrowing mix has also been tweaked to a 75-25 mix from 2019 to 2022.