As the Philippine economy slows down tax revenue has been declining so that the deficit will be larger even a record although still not that bad in relationship to GDP. The government may even issue 500 million more bonds later.
This is from Forbes.
-Philippines to sell $500 million global bond soon.
MANILA, July 10 (Reuters) - The Philippines plans to sell $500 million of dollar or euro bonds soon to plug a record budget deficit and to relieve pressure on domestic markets from rising borrowing needs.
The central bank approved on Friday the government's request to issue as much as $1 billion in global bonds, suggesting more issuance could come later this year.
'I think the idea is just come up with $500 million. It is most likely dollars (bonds),' National Treasurer Roberto Tan told Reuters.
The government raised its total borrowing needs by $1 billion this year after it slashed its revenue target by almost the same amount due to a slowing economy.
Manila also has obtained a guarantee from a Japanese state bank for up to $1 billion in Samurai bonds but Finance Secretary Margarito Teves said on Wednesday a global issue could be a cheaper option unless the bank agrees to reduce a guarantee fee on the planned yen bond offer.
Rosalia de Leon, head of the Department of Finance's International Finance Group, said on Friday Manila is still awaiting word from the bank.
Philippine peso bond yields, which were little changed on Friday, may fall next week following the government's announcement it would likely pick underwriters for the global bond sale soon, traders said. The announcement was made a few minutes before the local bond market closed.
Finance Secretary Margarito Teves had previously said the increase in additional borrowings would be shared between local and foreign debt.