Palace: No plans yet to tap foreign loans for Phl crisis response amid ME tensions

The government is not considering borrowing funds from international lending institutions to support its crisis response measures amid rising global tensions in the Middle East, Malacañang said Thursday.

In a press briefing, Presidential Communication Undersecretary and Palace Press Officer Claire Castro said the administration currently sees no need to secure additional financing from foreign lenders.

“Sa ngayon po ay wala pong napabanggit patungkol po diyan. Kinausap po natin at tinanong po natin ‘to mismo kay Secretary Go ng Department of Finance. Sa ngayon po ay walang balak (Nothing has been mentioned about that. We personally asked Department of Finance Secretary Frederick Go. There’s no plan at this time),” she said. 

Castro added that the government has sufficient funds to implement measures to cushion the impact of rising fuel prices.

The government has begun rolling out various interventions, including fuel subsidies for public utility vehicle (PUV) drivers. It is also considering seeking congressional approval to temporarily reduce excise taxes on petroleum products if global oil prices breach the $80-per-barrel threshold.

President Ferdinand Marcos Jr. earlier ordered the immediate distribution of P5,000 in fuel subsidies to public transport drivers affected by the fuel price spike.

Public utility drivers are expected to begin receiving the assistance starting next week.

The funds will be sourced from the Assistance to Individuals in Crisis Situations (AICS) program of the Department of Social Welfare and Development.

Social Welfare Secretary Rex Gatchalian earlier said the President directed the agency to set aside around P30 billion, or nearly half of the AICS budget for 2026, as the government’s initial funding for its response to the fuel price surge.

Oil markets have been volatile in recent weeks due to escalating tensions in the Middle East, particularly concerns about potential disruptions to key energy supply routes, such as the Strait of Hormuz, one of the world’s most critical oil shipping lanes.

Malacañang earlier assured the public that the government is closely monitoring global developments while implementing measures to protect consumers and vulnerable sectors from the effects of rising fuel prices, including possible increases in the cost of basic goods.