The Department of Finance (DOF) is urging the public to support the government’s domestic bond offerings, to help cover the budget deficit brought about by the coronavirus disease 2019 (COVID-19) emergency and prepare the economy for a quick and strong recovery from this public health crisis.
Carlos Dominguez, DOF secretary, said the success of one such bond issue — the small investor-targeted Premyo Bonds — has accomplished several goals, which include improving the ratio of the government’s borrowing mix in favor of domestic sources; providing small savers a safe investment opportunity while protecting them from spurious business schemes and onerous lending practices; and expanding financial inclusion among Filipinos.
“Investments in government bonds such as this one will help us cover our deficits brought about by the (COVID-19) emergency and prepare our economy for recovery,” Dominguez said during the first two major Premyo Bonds raffle draws held at the Bureau of the Treasury’s (BTr) main office in Manila yesterday.
“Because of the fiscal discipline we have exercised over the past few years, the Philippine government found financial strength in the midst of a global health, and now economic, crisis,” he added.
The BTr increased the rewards pool from P3 million to P4.5 million after the overwhelming reception last year for the Premyo Bonds, which was offered last November 25 to December 13 for as low as P500 per unit.
From the original target of P3 billion, the BTr was able to raise P4.961 billion from the one-year bonds, which carry a coupon rate of 3 percent per annum paid out per quarter, on top of having a chance to win cash and other rewards.
