Central bank says gov't should fund most debt locally

Reuters

Posted at Oct 22 2010 03:41 PM | Updated as of Oct 22 2010 11:41 PM

MANILA, Philippines - The government should raise most of its funding needs from the local market given strong inflows and domestic liquidity, the central bank governor was quoted as saying by the organizer of a forum.

Amando Tetangco was due to speak at a Security Bank forum on Friday. Ahead of his speech, the bank issued a press release that included portions of what it said would be his message.

"Given an environment of strong foreign exchange inflows and ample domestic liquidity, it would be opportune for the national government to consider looking more to the local market as its main source of funding," Tetangco was quoted as saying in the release.

Tetangco also said new foreign rules, expected to encourage outflows, would soon be released and the central bank would use a mix of policy instruments to manage inflows, reiterating earlier comments.