Reports coming from GMANews.TV will probably be considered by many as good news because it implies that Philippines may no longer sell so-called Reconstruction Bonds. This development came after two multilateral lenders offered to speed up the process of giving loans to rebuild the country’s ruined infrastructure.
An estimated US$ 280 million worth of program loans are expected to be granted faster than usual by the Washington-based World Bank and the Manila-based Asian Development Bank.
Worth PhP 12.8 billion, these loans – to be used for the rehabilitation of roads and highways damaged by typhoons – may no longer require government to sell bonds, Finance Secretary Margarito B. Teves said.
The country may no longer "focus on PhP 50 billion in reconstruction bonds if there are other options readily and immediately available instead of waiting for this original concept of reconstruction bonds," Teves said on Monday.
Both multilateral agencies have offered to realigning some of program loans to fit the spending requirements needed in the aftermath of storm Ondoy and typhoon Pepeng.
Of the total $280 million figure, US$ 200 million, or PhP 9.2 billion, will come from the World Bank while the remaining US$ 80 million, or PhP 3.68 billion, will be sourced from the ADB.
"These loans can be reprogrammed to support our reconstruction and rehabilitation effort," Teves said.
Both agencies presented a menu of options that will allow government to secure funds that will immediately enable the reconstruction/rehabilitation process, Teves said.
‘Ondoy’ and ‘Pepeng’ have damaged billions of pesos in public infrastructure, forcing government – which is already expecting a deficit – to spend more than it previously forecast.
Since tax collections have fallen – owing to slower economic activity brought about by the global slowdown – the government has earlier decided to borrow from foreign or local sources.
Funds from these cash-raising activities are expected to supplement proceeds from the sale of government assets such as the 103-hectare Food Terminal Complex in Taguig City, among others.
An estimated US$ 280 million worth of program loans are expected to be granted faster than usual by the Washington-based World Bank and the Manila-based Asian Development Bank.
Worth PhP 12.8 billion, these loans – to be used for the rehabilitation of roads and highways damaged by typhoons – may no longer require government to sell bonds, Finance Secretary Margarito B. Teves said.
The country may no longer "focus on PhP 50 billion in reconstruction bonds if there are other options readily and immediately available instead of waiting for this original concept of reconstruction bonds," Teves said on Monday.
Both multilateral agencies have offered to realigning some of program loans to fit the spending requirements needed in the aftermath of storm Ondoy and typhoon Pepeng.
Of the total $280 million figure, US$ 200 million, or PhP 9.2 billion, will come from the World Bank while the remaining US$ 80 million, or PhP 3.68 billion, will be sourced from the ADB.
"These loans can be reprogrammed to support our reconstruction and rehabilitation effort," Teves said.
Both agencies presented a menu of options that will allow government to secure funds that will immediately enable the reconstruction/rehabilitation process, Teves said.
‘Ondoy’ and ‘Pepeng’ have damaged billions of pesos in public infrastructure, forcing government – which is already expecting a deficit – to spend more than it previously forecast.
Since tax collections have fallen – owing to slower economic activity brought about by the global slowdown – the government has earlier decided to borrow from foreign or local sources.
Funds from these cash-raising activities are expected to supplement proceeds from the sale of government assets such as the 103-hectare Food Terminal Complex in Taguig City, among others.
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