Filipina Soul

In another positive sign of the Philippine economy’s outlook, a report on Bloomberg.com says that the Philippine government plans to repay its foreign debt ahead of time. The funds will come from a $1 billion sale of bonds.

The nation plans to keep paying some creditors ahead of time to take advantage of a stronger peso, Teves said. Declining debt, improving investor confidence and a drop in the Philippines budget deficit may prompt an upgrade in the outlook on the country’s credit rating to positive from stable, Standard & Poor’s said.

The dollar bond, which attracted bids worth 10 times the amount on offer, completes the government’s overseas issuance to pay maturing obligations this year, Teves said in Manila. The Philippines paid at least $645 million in debt before schedule last year.

There are a lot of numbers and economic terms in the report. The short of it is that reducing the government’s debt will allow it to focus its resources on needed infrastructure such as roads, schools, irrigation, and public utilities. This is how this “econo-speak” will translate into the daily lives of Filipinos. Something to watch and hope for.

[Source: Bloomberg.com]

Tags: Philippine economy, Philippine government, Philippine debt

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