Philippine eyes P2.2-T loan

The Philippines’ debt management strategy prioritizes the domestic market at 75 percent of the total requirement, while 25 percent will come from external sources

Department of Finance Secretary Benjamin Diokno recently disclosed that the national government needs to raise at least P2.2 trillion in order for the Philippines to have adequate fiscal resources on top of the national budget for this year’s plans and programs.

“To jumpstart the implementation of our development plan, President Ferdinand Marcos Jr. has signed into law the P5.3-trillion National Budget for 2023. Now, in order for the Philippines to have adequate fiscal resources on top of this budget for this year’s plans and programs, we need to raise P2.2-trillion in borrowings,” said Diokno during the Philippine Economic Briefing in Germany.

He clarified that the loans are necessary for the country to afford strategic and impactful investments in critical infrastructure and human capital development, which will ultimately advance economic productivity.

“We are known internationally for being a responsible borrower,” Diokno said.

The Philippines’ debt management strategy prioritizes the domestic market at 75 percent of the total requirement, while 25 percent will come from external sources.

“Our debt becomes their investment, and our interest expense becomes their interest income. The benefits of domestic borrowing are all retained within the Philippine economy,” Diokno said.


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