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Gov’t issues global peso notes worth $1B

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The Philippine government has issued $1 billion worth of global peso notes, the proceeds of which will be used to buy back existing bonds in an effort to better manage its liabilities, the Investors Relations Office announced Thursday.

The government wants to buy back around $1.5 billion worth of bonds from holders.

Assuming that the government is able to sell all the global peso notes for $1 billion, it will need to raise $500 million more by other means so it can buy back all the bonds as planned.

To plug the gap, the government is considering buying $500 million from the Bangko Sentral ng Pilipinas, said an official privy on the matter.

The BSP, which manages about $82 billion in foreign exchange reserves, has offered to sell dollars to the government. It said the government could save much by buying dollars from the BSP instead of turning to foreign creditors.

The recently issued government bonds have a 10-year maturity. On the other hand, the bonds that the government intends to buy back are expected to fall due in less than 10 years, the source said.

The government, therefore, will be able to extend the average maturity of its liabilities with the buyback initiative.

Also, the government expected the bonds it issued to fetch interest rates lower than that of the debt notes it hoped to buy back. As a result, the repurchase will enable the government to generate savings.


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Tags: Bonds and t-bills , buy back , fund raising , global peso notes , Government , Philippines

  • opinyonlangpo

    The move is expected to generate savings, this government is really good in making money. More money to meet the 2013 budget. Lucky Filipinos.

  • https://me.yahoo.com/a/hbRkpPw1oYTBJamz.EH7acMZBBVoIlWXriA-#e4348 Felix

    Sana meron din government bonds na available sa mga maliliit na Filipino na ang presyo ay wala pang patong ng mga ahenteng krokololong.   

  • joboni96

    utak utang
    utak zte aroyo pa rin

    kitang kita pa rin dayuhan
    sa pawis natin

    1. retire all foreign debt
    using foreign exchange reserves

    > may maiwan pang $15 billion+
    > 30% + of national budget
    can now be used for projects

    2. sell direct retail government bonds
    to all pilipinos
    bypassing intsik kastinoy banks

    > higher interest incomes to pilipinos
    instead of going to intsik switik pockets
    > lower interest costs to government
    resulting in more projects and services

    no way sabi ng mga
    1. intsik switik
    2. miseducated doctorated economists
    na nakikinabang sa present system
    3. foreign capitalist
    wala ng kita, wala pang control
    sa ekonomiya natin

    • Angelo Macaraig

      As you may understand, every nation and government is very motivated to develop a strong and high Forex exchange market reserve. Ask why? Do a research on the significance of foreign reserves.

      • joboni96

        huwag lang sobra

        while you’re paying off
        30% of your national budget
        for debt servicing
        instead of for projects

        and you have excessive
        foreign reserves

        research ka na sa libraries
        ng mga globalist and imperialists
        whose main interest is
        to make excessive buck from us

        swiping it away
        from the mouth
        of our people

        regular over educated but
        miseducated guy



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