OFWs eyed in new government scheme to borrow $3 billion

 

Finance Sceretary Diokno: "If you have a young kid whom you must
 send to school in five years, you can invest your money there."

Overseas Filipino workers (OFWs) will be the target lenders when the Philippine government launches retail dollar bonds (RDBs) before yearend or early next year, to raise $1 to $3 billion to help fund its operations, according to Finance Secretary Benjamin Diokno.

Diokno said the aim of the six-month exercise is to attract investments equal to at least one-tenth of dollar remittances from OFWs, open this investment vehicle to more people and help bolster the peso against the strong US dollar.

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He said that for at least $100, OFWs can buy the bonds using e-wallets such as G-cash and redeem their investment plus interest after five years.

 “If you have a young kid whom you must send to school in five years, you can invest your money there. [This is a better investment than] using their earnings for tricycles or something similar,” Diokno said in yesterday’s (Nov. 30) Kapihan sa Manila Bay forum.

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He first discussed the idea last Friday (Nov. 25) during the Annual Reception for the Banking Community hosted by the Bangko Sentral ng Pilipinas, saying the bond offering “will be a new one for our OFWs”.

The new borrowing follows another retail bond offering help last September in which the Duterte government originally aimed  to raise $400 million for five-year and 10-year RDBs aimed at investors in the Philippines but eventually raised $866.2 million due to high demand.

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The details of the bond offering are being finalized by the Bureau of Treasury.

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