Business World
A DOMESTIC debt exchange that seeks to swap shorter-dated papers for 25-year bonds has been approved by the president, a Cabinet official yesterday said.
Finance Secretary Cesar V. Purisima told Malacañang reporters that President Benigno S. C. Aquino III had given the go signal for the swap, greenlighted last week by the Monetary Board.
National Treasurer Roberto B. Tan now has "to execute the transaction," Mr. Purisima said.
"This will be good for our capital markets because we will open up the market to longer tenor instruments and make the 25-year more liquid," he added.
Asked about the amount involved in the swap, Mr. Purisima replied: "It really depends on the market. It’s up to Treasurer Tan to execute it. He has to execute it in a manner that is good for the country. If the pricing is favorable we do more. If the pricing is not favorable then we don’t do as much."
Contacted by phone, Mr. Tan again declined to disclose the amount to be involved.
"The amount for the swap is an aggregate amount, but I cannot divulge on it right now because we have not secured a copy of the approved [swap proposal]," Mr. Tan told BusinessWorld.
"[The Treasury] is not saying that P60 billion would be the minimum amount to be swapped. We will announce the initial volume upon the launch of the swap," he added. -- Ana Mae G. Roa and Ann Rozainne R. Gregorio
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