The Philippines borrowed the bulk of its financing requirements from the local debt market as the financial system remained awash in cash. At the same time, selling more IOUs locally reduced foreign exchange risks.
As the peso ended November at 48.085 against the US dollar from October’s 48.396:$1, the government saved P10.74 billion from its external obligations even as it had net loan availment of P2.55 billion that month, the Treasury said.The national government’s outstanding debt had been programmed to hit a record P10.16 trillion by end-2020 and further climb to P11.98 trillion in 2021.
In a separate statement on Wednesday, Finance Secretary Carlos Dominguez III thanked the aid agency Japan International Cooperation Agency for disbursing last Tuesday the second 10-billion yen tranche of its post-disaster standby loan 2, which will be spent to aid affected families and rehabilitate areas flattened by a string of strong typhoons during the fourth quarter of 2020.So far, Jica has released 20 billion yen or P9.
“As a friend and trusted partner of the Philippines, Jica stands by Filipinos whose lives were disrupted because of the recent natural disasters. Through the Jica post-disaster assistance, we hope that vulnerable sectors affected will find relief and support to recover their livelihood and income through the spirit of ‘bayanihan’ in these difficult times,” Jica Philippines chief representative Eigo Azukizawa said last Tuesday.