Monday, 22 May 2017
MANILA: As the Duterte administration pivots to neighbouring economic giants such as China and Japan that offer financing for infrastructure projects, the share of foreign borrowings may exceed the government’s medium-term programme and reach 30% of the total, said the Philippines’ chief economist said. Socioeconomic Planning Secretary Ernesto Pernia said the yearly borrowing programme of 80% domestic and 20% external until 2022 was a very safe mix of debt.
“We expect our debt-to-GDP (gross domestic product) ratio, which is currently on the border of 40% of GDP, to even go down to 35% in the coming years,” said Pernia, who is also the head of state planning agency National Economic and Development Authority.
Given the huge pledges of assistance as well as potential financing to be provided by the Chinese and Japanese governments, Pernia said the borrowing mix would likely change a bit such that foreign borrowings could hit up to 30% of the total.
Source by: Internet