The national government is planning to seek financial assistance in the form of loans from foreign investors amounting to $5 billion next year, the Bureau of the Treasury said.

National Treasurer Rosalia V. de Leon said on Monday, Aug. 7, that the purpose of seeking this loan support from offshore lenders is to obtain additional financial resources for the 2024 national budget.

Foreign commercial financing refers to loans or financial support provided by foreign entities, such as banks or private investors, to governments in another country.

The government is seeking foreign commercial financing to fund infrastructure projects, stimulate economic growth, and manage its budget deficit.

Based on the 2024 Budget of Expenditures and Sources of Financing submitted to Congress, the national government plans to borrow P275 billion through the sale of foreign bonds and other inflow.

The bonds and other inflows are under the national government’s total borrowing plan of P2.46 trillion in 2024, which is 12 percent higher than this year's P2.2 trillion program.

Under the 2024 financing plan, the majority, approximately 75 percent or P1.845 trillion, will be sourced locally. The remaining balance of P615 billion, which accounts for 25 percent, will be sourced from overseas markets.

Likewise, the Treasury has allocated P1.911 trillion for government debt service, a 23 percent increase compared to the P1.552 trillion program for this year.

The majority of the debt payments, accounting for 77.1 percent, are allocated to local creditors, amounting to P1.474 trillion. This represents an 18 percent increase from the P1.246 trillion program this year.

Out of that amount, P1.003 trillion will be used for principal amortization, while the remaining P470.68 billion will cover interest payments.

The government has also allocated a total of P437.61 billion to repay foreign creditors, a 43 percent jump compared to this year's allotment of P305.68 billion.

Within that program for foreign banks, P237.82 billion is allotted for principal amortization, while the remaining P199.79 billion is earmarked for interest payments.

The Marcos administration expects the national government's total outstanding debt to climb to P15.842 trillion by 2024 from this year's target of P14.623 trillion.

As of June 2023, the total debt of the national government already stood at P14.148 trillion, still short of the full-year program by 3.2 percent or P475 billion.