The national government is planning to issue $500 million of Japanese yen-denominated bonds, as well as US dollar and euro-denominated bonds this year, to raise an additional $3 billion for its 2024 borrowing program.

Finance Secretary Ralph Recto said the government will begin issuing the bonds in tranches in the next few days, with the samurai bonds expected to be borrowed last.

“I think we will begin issuing the Treasury for the $3 billion that we need to borrow this year. It will start soon,” Recto told reporters on the sidelines of the 74th anniversary of the Philippine Life Insurance Association.

“Maybe $500 for Samurai. Of the $3 billion, yeah, maybe,” he added, citing that “it is the optimum time to get lower rates. The idea is to do it for the cheapest borrowing cost possible.”

The Philippines last issued Samurai bonds in April 2022, raising 70.1 billion Japanese yen.

For this year, the Marcos administration plans to borrow $5 billion, of which it has already raised $2 billion, leaving a balance of $3 billion.

Latest data from the Bureau of the Treasury showed that debt stock reached P15.48 trillion as of end-June, reflecting a seven percent increase or P960 billion higher than the P14.52 trillion recorded in the same month last year.

P17 trillion debt next year

Even with higher borrowings seen next year, Recto said there is “nothing to worry about” as the country’s economic growth will continuously increase.

Based on the Budget of Expenditures and Sources of Financing submitted to Congress, the government expects to incur a total debt of P16.05 trillion by the end of this year and rise further to P17.353 trillion by the end of 2025.

“Nothing to worry about. And like I said, two-thirds of that, we owe to ourselves. One-third lang ang foreign dyan. Two-thirds sa atin sarili. So, pesos yun,” Recto said

“The economy will be bigger too. So the debt to gross domestic product (GDP) will roughly be 60 percent. That will be going down to 57 percent by 2028,” he explained.

Rizal Commercial Banking Corporation Chief Economist Michael Ricafort explained that it will help maintain the country’s favorable credit ratings, which will lead to "relatively lower borrowing or financing costs at better terms and also help make fiscal and overall debt management sustainable over the long-term and for the coming generations."