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Gov’t eyes raising P436B in foreign loans for COVID-19 response efforts
The Philippine government is aiming to raise P436 billion or approximately $8.72 billion in foreign loans for its COVID-19 response and economic recovery efforts.
This target is part of the administration's sound debt management strategy, acknowledging increased borrowing due to the unbudgeted pandemic response.
The government had previously secured at least US$5.758 billion in loans as of June 4, with President Rodrigo Duterte informing Congress on June 15 of a total of $6.4 billion raised as of June 11.
The earlier $6.4 billion included $6.2 billion in newly contracted loans from institutions like the World Bank, ADB, and AIIB, as well as global bond issuances.
Despite the plan to raise more loans, the Philippines will not default on its foreign debt.
The country's standing as a borrowing nation is strong, supported by a credit rating upgrade to 'A-' by Japan Credit Rating Agency Ltd. amidst the health crisis.
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