The Aquino Administration approved on Monday its FY2011 borrowing program in the amount of P307.8 billion.
Presidential Communications Development and Strategic Planning Secretary Ricky Carandang announced in a press briefing at Malacanang on Tuesday that the decision was reached after President Benigno S. Aquino III met on Monday with Finance Secretary Cesar Purisima and Budget Secretary Florencio Butch Abad.
“The foreign mix will be 70%-30%, in favor of domestic borrowing,” Carandang said.
He explained that of the P307.8 billion net borrowing expected, P45.1 billion will be external or foreign borrowing, and P262.7 billion will be the domestic borrowing.
At the same time, Carandang said the Aquino administration will also issue peso denominated global bonds aimed at raising funds to plug the country’s swelling budget deficit.
Programmed budget deficit next year was pegged at P285 billion.
Carandang noted that this will be the first securities float of the peso instruments in the global market as the Philippines usually floats global bonds denominated in dollars and even in Japanese yen.
The move is part of the Aquino Administration’s liability management efforts. (PIA/PCOO)
