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Monday, December 2, 2024 Vol. 20 No. 54
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‘GLOBAL RISKS TO HURT DEBT-GDP RATIO GOALS’
NYC LOVES PHL The Philippine Department of Tourism lit up Times Square with its “Love the Philippines” campaign on November 25, 2024. Showcasing stunning 15-second videos of the country’s breathtaking beaches, rich biodiversity, and vibrant culture, the ad invited millions of holiday travelers to discover the Philippines. Complementing the Times Square ad, the campaign also featured New York taxi top ads, festive decorations at the Philippine Center New York, and global promotions in London, Singapore, Sydney and France. TROI SANTOS
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By Reine Juvierre S. Alberto
HILE the government’s debtto-GDP ratio is projected to fall below the internationally accepted threshold of 60 percent by 2026, a think tank warned that a global economic slowdown could cause it to reach 70 percent. Based on the Congressional Policy and Budget Research Department (CPBRD) debt sustainability analysis, the government’s debt, measured against its gross domestic product, will settle at 59.4 percent in 2026 due to narrowing primary deficit and interest rate cuts. This projection, however, is later than the government’s mediumterm fiscal framework (MTFF) pro-
jection of 58.3 percent in 2025. The economic managers’ target of 55.8 percent, coming from 51.1 percent, debt-to-GDP ratio by 2028, was noted to be “still elevated.” Prepandemic debt-to-GDP level was at 39.6 percent in 2019, but has shot up to 61.3 percent as of the third quarter of 2024. The CPBRD said a recession See “Global,” A2
PHL EYES INVESTMENT MISSION BLITZ AFTER CREATE MORE I.R.R. By Andrea E. San Juan @andreasanjuan
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HILIPPINE government officials are eyeing to do more investment missions to the United States, Japan, South Korea and the European Union once the implementing rules and regulations of Create More are finalized by February 2025, according to the Office of the Special Assistant to the President for Investment and Economic Affairs (Osapiea). At the recent 3rd Luzon Economic Corridor (LEC) Steering Committee meeting, Special Assistant to the President for Investment and Economic
Affairs Frederick Go said plans for such a roadshow are already in motion and are set to be launched “immediately” following the finalization of the implementing rules and regulations of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy. “The IRR is expected to be completed by February of next year. We’re waiting for the IRR before we do that roadshow,” Go said. In a statement at the weekend, Osapiea explained that representatives from both the See “Eyes,” A2
Hot money outflows surge by 61.4% in October—BSP By Cai U. Ordinario @caiordinario
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HE country’s foreign portfolio investment outflows surged in October 2024, the Bangko Sentral ng Pilipinas (BSP) has disclosed. The BSP said there were $201.49 million more outflows in October 2024, representing a 61.4-percent growth in outflows during the period. The country’s hot money outflows increased to $529.68 million in October 2024 from the $328.19 million posted in October 2024. “These investments refer to the following inward foreign investments registered with authorized agent banks: PSE-listed securities;
Peso-denominated government securities; [and] Peso time deposits with banks with minimum tenor of 90 days,” BSP said. “[The list also includes] other Peso debt instruments; unit investment trust funds; and other instruments such as Exchange Traded Funds and Philippine Depositary Receipts,” it added. The BSP said registered investments in October 2024 amounting to $1.48 billion increased by $525.49 million or by 55.1 percent compared to the $954.38 million recorded in October 2023. However, gross outflows of $2.01 billion was higher than the gross inflows. The outflows in See “Hot,” A2
NG 10-mo borrowings of P2.43T near full-year plan
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HE national government’s borrowings drew close to the P2.570-trillion full-year program as it climbed by double digits to P2.429 trillion as of the first 10 months of the year, to finance the fiscal deficit. Latest data from the Bureau of the Treasury (BTr) showed that the government’s gross borrowings reached P2.429 trillion from January to October 2024, up by 23 percent from P1.975 trillion during the same period in 2023. During the 10-month period, total borrowings accounted for 94.51 percent of the P2.570-trillion target for the year. Broken down, the bulk of the borrowings or 76.69 percent were
sourced locally while the remaining 23.31 percent came from foreign lenders. Domestic borrowings increased by 22.64 percent yearon-year to P1.863 trillion from P1.519 trillion. A total of P1.069 trillion was raised through the auction of Treasury bonds (T-bonds) while P209.381 billion was generated from Treasury bills (T-bills). Last year, the government borrowed less through T-bonds at P894.153 billion and T-bills at P139.697 billion, sourcing 70 percent of financing domestically. Meanwhile, external borrowings amounted to P566.247 billion, 24.64 percent higher than the P456.311 bil-
lion it loaned a year ago. About P256.235 billion was obtained from global bonds, P223.040 billion from program loans and P86.972 billion from project loans. Both global bonds and program loans increased coming from last year’s P163.607 billion and P187.573 billion, respectively. The government acquired fewer project loans compared to last year’s P105.131 billion. For October alone, the state borrowed a total of P129.264 billion, of which P61.800 billion came from foreign financiers while domestic sources loaned P67.464 billion. Program and project loans amounted to P49.892 billion and
P11.908 billion, respectively, in October as part of external borrowings. The issuance of T-bonds generated P45 billion while T-bills brought about P22.464 billion during the month. The government will borrow the remaining P141 billion this year to finance its expenses not covered by revenues. A mix of 75:25, in favor of domestic sources will be followed. As of end-September, the government’s outstanding debt reached a new record-high at P15.893 trillion with domestic and external debt amounting to P10.791 trillion and P4.957 trillion, respectively. Reine Juvierre S. Alberto
PESO EXCHANGE RATES n US 58.6940 n JAPAN 0.3873 n UK 74.4827 n HK 7.5407 n CHINA 8.1013 n SINGAPORE 43.7362 n AUSTRALIA 38.1452 n EU 61.9633 n KOREA 0.0421 n SAUDI ARABIA 15.6255 Source: BSP (November 29, 2024)