The Philippines' Bureau of Treasury would boost domestic bond sales to raise nearly all of its debt requirements in the wake of record low interest rates and an increasing value of the peso. This will be done through debt auctions amounting to Php150 billion for three months until June.
In each of the monthly auctions, according to Treasurer Rosalia de Leon, the government will offer three year, five year or seven year bonds and nearly Php 20 billion in bills. Previously, the offer was at Php 120 billion with Php 25 billion in bonds while Php 15 billion were in bills.
The focus would be raising all of its debt needs locally for 2013 to end the decades long dependence on foreign sources. The Bangko Sentral ng Pilipinas had already cute the interest rates on Php 1.86 trillion pesos in its special deposit account funds and would also limit its reverse repurchase facility to manage capital inflows in the long run.
Join the Conversation