Gov't sets higher borrowing program for 2011


Posted at Aug 27 2010 02:52 PM | Updated as of Aug 28 2010 03:00 AM

MANILA, Philippines - The Aquino government plans to borrow P772.9 billion next year, up 2.4% from P754.6 billion this year as it seeks to spend more on infrastructure and social services.

Of the amount, bulk or P563.33 billion will be sourced from the domestic market, much higher than the P473.2 billion this year, while the rest will come from foreign creditors.

Program loans are projected to reach P60.58 billion in 2011, 42% more than the P42.53 billion in 2010.

Project loans, meanwhile, are programmed to increase by 37% to P31.56 billion from P22.9 billion.

Currently, the government is studying a peso global bond issue, and a dollar bond sale to raise as much as $1.5 billion before the end of the year.

The government has so far raised $2.5 billion from offshore debt markets this year.