Philippines says will stick with financing plans even after Fed hike

[MANILA] The Phlippines will stick to its financing plans regardless of the US Federal Reserve's decision to raise borrowing costs for the first time in nearly a decade, a senior government official said on Thursday.

Finance Secretary Cesar Purisima also said he expects the Philippines to remain resilient amid the risk of capital outflows, with the country's current account forecast to stay in a surplus and given its "solid" macroeconomic fundamentals. "We will remain opportunistic in our funding strategy, carefully monitoring market developments including further signals for rate path clues," Purisima said in a statement.

The Philippines, which used to be one of Asia's most active sovereign bond issuers, is currently relying more on onshore liquidity to finance its budget. But it has no plans to stop issuing offshore bonds.

REUTERS