Philippines targets foreign-currency debt reduction

Rosalia De Leon, treasurer of the Philippines in its department of finance, says the dependency will change, with the country's local-currency market growing quickly.
The administration of president Benigno Aquino has cut wasteful spending and streamlined tax collection, which has improved the fiscal position and reduced borrowing costs.
The administration of president Benigno Aquino has cut wasteful spending and streamlined tax collection, which has improved the fiscal position and reduced borrowing costs.

The Philippines is aiming to cut its dependency on foreign-currency debt a reliance some fear could threaten the country’s economic prospects.

Speaking at FinanceAsia and The Corporate Treasurer’s annual corporate funding event in Manila last week, Rosalia De Leon, treasurer of the Philippines in its department of finance, said the focus would change.

“This year and next year we will engage domestic liquidity for our funding needs,” she said, instead of tapping US dollar markets. The government can now obtain longer-term financing in pesos, at cheaper interest rates than in the past.

Government officials say they are aware of the need to...

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