Retail bond for Filipinos overseas will be mostly in dollars

The bulk of a retail bond issue targeting Filipino workers abroad will be denominated in dollars, National Treasurer Roberto B. Tan said on Monday. If the proposed amount of $500 million for the issue is approved, 80 percent or $400 million will be dollar-denominated while the rest will be in euros, Tan said. "Most [Filipino workers overseas] are holding foreign exchange denominated in dollars. Those in the Middle East and the US receive dollar currency," he pointed out. Tan said they had yet to set the bond sale date, as well as the mechanics on how to promote it, pending central bank approval. If it is approved before the month ends, the financial literacy campaign could take place in April, he added. Earlier this month, Tan said President Gloria Macapagal-Arroyo had given the authority to issue up to $1 billion worth of the dollar- and euro-denominated bonds. Proceeds from the bond sale will be used to plug the government’s budget shortfall, which is expected to hit P293 billion this year. Last year, the government’s budget deficit reached a record P298.5 billion. The government raised $1.5 billion from global bonds in January and $1.1 billion from the sale of Samurai bonds last month. — BusinessWorld