Imee tells DOF: Take advantage of Philippines'robust' credit rating, borrow more for COVID-19 relief

Senator Maria Imelda Josefa "Imee" Marcos on Wednesday appealed for the government to increase borrowing to fund efforts against the coronavirus disease, as the finance department said borrowing is now on a record high.

In a Senate hearing, Marcos said the government should take advantage of the "BBB+" rating of the Philippines and secure loans from multilateral lenders.

"Okay naman 'yung triple B pero ano naman 'yung rating kung hindi naman tayo mangungutang, kaya siguro ang sasabihin ko, full support po kami sa DOF pero sana buksan na ninyo ang isipan na mangutang na po tayo para makatulong sa tao," she told Finance Secretary Carlos Dominguez III.

At present, the Philippines has a 'BBB+' rating from S&P Global Ratings, one notch away from the 'A-' rating. A higher rating would translate to lower borrowing costs, indicating that the country has a strong capacity to meet financial commitments.

"I think tama po kayo in terms of robustness, talaga namang robust naman ang Philippine economy pero maski ang central bank, sinasabi madadgowngrade na po tayong lahat, ang buong mundo madadowngrade, hindi na mabuti yung road to a rating," said Marcos.

Marcos' remarks came as she questioned the P130-billion supplemental budget being requested by the economic managers to finance the recovery period from COVID starting June.

"We have in fact been borrowing at a historic rate and fortunately, because of our robust credit rating, we have been able to borrow money at lower interest rates than our peers for similar tenors and similar currencies," Dominguez said in response.

The Philippines has already secured several loans from the World Bank and the Asian Development Bank to support relief and assistance efforts for those hit by the coronavirus.

Acting Socioeconomic Planning Secretary Karl Kendrick Chua earlier said the ratio of the Philippine debt to economic growth could likely hit 47%.

Updated government figures show that the debt-to-GDP ratio was recorded at 39.6% in 2019. -MDM, GMA News