Published May 6, 2021, 5:00 PM
The domestic bond market is expected to sustain its growth this year driven by government debt issuances to fund its huge expenditures amid falling revenues and the return of companies in the bond market.
Jean De Castro, head of the Fixed Income of Manulife Asset Management and Trust Corporation (MAMTC), in an email interview with Business Bulletin cited the government’s P2.6 trillion Four Pillar Socioeconomic Strategy against COVID-19.
Jean De Castro, head of the Fixed Income of Manulife Asset Management and Trust Corporation (MAMTC). Photo credit: https://assetmanagement.manulife.com.ph
“The Philippines’ economic slowdown has resulted in lower tax revenues, and this shortfall is partially funded by debt issuance, both local and foreign,” said De Castro. She noted that the domestic bond market grew by 28.9 percent in 2020, driven by government borrowings to raise funds for the pandemic.