NG to pick structure for OFW bonds
The National Government (NG) is now finalizing which structure it will use for its planned issuance of bonds for overseas Filipino workers (OFWs), a ranking Finance official said.
“The Department of Finance (DOF) is studying the proposals of Land Bank of the
The two banks have been tapped as financial managers for the issuance.
Tan said he cannot disclose the types of structures proposed but stressed that the final structure would be the most attractive.
“The end product would be the most attractive in terms of yield and liquidity,” Tan said.
The DOF has said that it is planning to issue retail Treasury bonds (T-bonds) next year specifically for OFWs but is still studying which currency is most appropriate for the offer.
The government is particularly looking for the most appropriate instrument to be issued and at the same time settling the problem on legal jurisdiction.
Cruz said Landbank is interested in the fundraising activity as it has previously proposed the issuance of OFW bonds.
The Bangko Sentral ng Pilipinas (BSP) earlier urged the NG to issue the bonds in an effort to help OFWS and their beneficiaries put their earnings in worthy investments.
The BSP said the proposed bonds may be modeled after the government’s retail treasury bonds in order to avoid cross-border regulatory problems.
The government has been coming up with investment projects for OFWS to help them park their earnings in worthy long-term investments so that they would be able to save their money.
OFWs and their families have caused alarm over the steady rise of the peso against the greenback, as this diminishes the value of their dollar earnings.
The peso has arleady entered the 40-to-the dollar territory recently on steady dollar remittances and foreign investment inflows.
There are at least 12 million Filipinos abroad working as domestic helpers, seamen, medical professionals, teachers, accountants and engineers, among other professions.
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