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REVENUE
flows between now and September would help monetary
authorities decide whether to go ahead with a
$500-million bond sale or dump the idea altogether.
“As we
get more certainty on our revenue flows the nearer we
get to the fourth quarter, that is when we will decide,”
Tan said.
In the
first six months, revenues totaled P570 billion or 8.3
percent higher than program of only P561.7 billion.
While
experts understand Tan’s wait-and-see stance on the bond
sale, the Bangko Sentral ng Pilipinas wants him to push
ahead to help the central bank better manage the
exchange rate, on the premise that the higher the
foreign flows, the stronger the local currency gets.
Tan said
the national government would decide to go ahead or
alternately scrap the bond sale regardless of the
monetary impact of the transaction.
He also
said they could push for it “possibly for pre-funding
purposes.”
Such a
plan requires careful execution as the national
government could end up with comparatively expensive
money it could not immediately put to use for the
benefit of the greater good.
Tan said
the government could step up its program loans funded by
multilateral financial institutions.
He said
there is, for instance, up to $200 million in official
development assistance from the Asian Development Bank
that will help them underwrite more reforms in the
Judiciary sector.
Should
the negotiations prove quick enough, Tan said they could
seal an agreement later this year and draw on the loan
soon after. |
