The government has been saying that it has already borrowed as much as it planned to borrow from the international credit market but this year’s funding requirement turned to be at least P50 billion more than expected.
Finance officials also said the government was about to wrap up the proposed currency swap with the Asian Development Bank (ADB) pending the resolution of residual technical issues that have been bogging down the agreement.
Finance Undersecretary Eric O. Recto said over the weekend that the government and the ADB were already close to "finding the common ground" but much of the major points have been resolved.
Recto said the initial debate over pricing has been resolved and the currency swap was likely to happen soon.
In the meantime, Recto said the NG was preparing at least the first portion of the $1-billion borrowing within the next six months.
Recto said the Napocor needs as much as $1 billion more but the National Government has to go into the market on its behalf since creditors were much more willing to lend to the NG at better terms.
The borrowing has already been approved by the Monetary Board in principle, allowing the National Government to finalize the terms of its borrowing.
Recto said that with the May elections issue now behind, the market might be more receptive compared to the difficulties the government has been having in its domestic borrowing.