|
THE government plans to tap domestic sources for its funding needs
next year to address exporters’ concerns over a rapidly
appreciating peso, the Department of Finance said.
“The government is not scrapping foreign
borrowings next year though we are looking into the proposal of
sourcing more financing from domestic sources to help stem [the]
sharp peso appreciation [and] partially address the concern of our
exporters,” Finance Secretary Margarito B. Teves said in a
statement.
“We will try to strike a balance between the
need to help stabilize the peso and our own borrowing program based
on opportunities that are presented to us,” he added.
The government plans to borrow P325.57 billion
next year. This is 16.7 percent lower than this year’s
P390.8-billion financing requirement. Under its 2008 borrowing
program, the government will source P228 billion from domestic
sources, or 12.3 percent lower than this year’s planned local
borrowings of P260.1 billion.
Foreign loans next year would amount to P97.5
billion, smaller than this year’s P130.7 billion. Under this
financing mix, the government will source 70 percent from the
domestic market, and the remaining 30 percent from abroad. This is
an improvement from last year’s mix of 67 percent domestic and 33
percent foreign.
Teves said the strengthening of the peso against
the dollar and the stock market record-breaking rallies reflect
growing investor confidence in the Philippines.
So far, the peso has averaged 47.33 against the
greenback.
The Bangko Sentral ng Pilipinas forecast the
peso to average between 46 and 48 to the dollar this year.
Last Thursday, the peso closed to a seven-year
high of 44.050, stronger than the previous day’s closing price of
P44.150. Dollar-buying by the central bank, however, limited the
peso’s gains, traders said.
A trader said large inflow of remittances in
time for school fees propped up the peso.
--Maricel E. Burgonio
|
