The Philippines is looking to tap the US bond market to take advantage of the current interest rate environment, Finance Secretary Carlos Dominguez III told Bloomberg TV on Tuesday.
But Dominguez said the government will work to keep the country’s debt to 60 percent of GDP, with the current debt-to-GDP ratio of the Philippines at 54 percent.
“Right now, we started out in 2020 at 39.5 percent of GDP. And we have increased it around (to) 54 percent. We have to keep in mind of course that the foreign reserves of the Philippines are already $110 billion and that’s actually higher than our total foreign debt,” he said.
Dominguez also told Bloomberg the government does not intend to increase its borrowing from the Bangko Sentral ng Pilipinas and aims to wind down its loans from the central bank later this year or early next.
Dominguez also said the current strict quarantine in the National Capital Region and neighboring provinces may cut GDP Growth by 0.5 percent. – Ruelle Castro