Philippines to issue Marawi bonds starting January 2018

The Philippines expects to issue "Marawi bonds" in January 2018 as part of the rehabilitation funds for the war-torn city, the Department of Budget and Management (DBM) said Wednesday.

"As far as the Marawi bond is concerned, it's a go and we will probably issue it early next year—in January," Budget Secretary Benjamin Diokno said in a press conference in Manila City.

He did not elaborate, saying the details are still being finalized by Finance Secretary Carlos Dominguez III.

Dominguez earlier directed the Bureau of the Treasury (BTr) to study the possible issuance of P30 billion worth of debt securities that will fund the rehabilitation and reconstruction of Marawi City.

President Rodrigo Duterte declared on Tuesday that Marawi has been liberated from the influence of ISIS-linked terrorists, a day after Isnilon Hapilon, the supposed emir of the Islamic State in Southeast Asia, and Maute group leader Omar Maute were killed by government troops.

Duterte pledged earlier to allocate at least P20 billion to rehabilitate Marawi. The money would be released in three tranches—P5 billion this year, P10 billion in 2018, and the balanced in 2019.

"The DBM has committed P5 billion to be sourced from the augmented national disaster risk reduction fund. It's time to move forward and rebuild Marawi," Diokno said Wednesday.

But government needs to finalize the Marawi rehabilitation plan.

"Until we have actually figured out what they want to do, then we can't come up with some definitive number," Diokno noted.

The Cabinet official welcomed the likelihood of foreign donors helping in the reconstruction of Marawi, the capital of Lanao del Sur, but made it clear financial assistance is not an issue at the moment.

"What we really need is technical assistance. Funding is not a concern for us, you know. I think we can manage. If there are some foreign donors, they are welcome but we will not need to strain on financing," he said. — VDS, GMA News