The Bangko Sentral ng Pilipinas is expected to take up the proposal today. Details for the peso bond sale is still under discussion.

According to BSP Deputy Governor Amando M. Tetangco Jr., "the impact of this bond offer is positive. It is another financial instrument that would be available in the domestic market."

The bond issue, the first by a multilateral agency, will target different investors, mostly institutional investors.

In the meantime the proposed $200 million currency swap deal between the ADB and the Philippine government is again placed under review, after disagreements bogged down talks a few months back.

The Department of Finance and the ADB are reopening negotiations for the possibility of finally getting the currency swap approved on both sides.

Several months ago, negotiations fell apart because of pricing and technical problems.

This is the first arrangement with ADB and both the bank and the government are in maximum positions.

There was a scheduled signing of agreements in May last year however the DoF unearthed documentation issues, which the government was not given enough time to review and this created technical problems for the government side.

Pricing issues were also cited as one of concerns and ADB proposals, according to the source, has not been "beneficial" to the government. In the first place, the official said the ADB proposal is not a financial aid but is a commercial transaction.

The Philippine government said earlier it is in a position to dictate the terms in any cross-currency financing facility arrangement it may enter into, in the wake of several like offers from other sources including ING Bank and the World Bank.

Under the facility, bank swaps foreign convertible currencies with the government for pesos, which are then lent to banks that can re-lend them to selected business sectors.