The amount is already factored in the central bank’s balance of payments surplus — which is the country’s transactions with the rest of the world, of $900 million for 2006. As of August, BOP posted its highest surplus of $2.291 billion this year.

For this year the NG will get the same amount of bond sale proceeds of $3.1 billion. The BOP surplus is also expected to end the year higher at $900 million from earlier projection of $853 million.

Finance Undersecretary Roberto Tan said the NG preferred borrowing mix next year is still 48:52 in favor of domestic sourcing.

In the meantime the government’s biggest revenue drain National Power Corp. has also programmed dollar borrowings of $600 million for 2006, lower than the $650 million target for the current year, said Tan.

Napocor recently raised $400 million from the sale of debt papers to finance its requirements and to pay for maturing loans this year. The last bond sale is $150 million, which has been approved in principle by the Bangko Sentral ng Pilipinas.

Despite that it is able to borrow from the global markets again, the company relies mainly on government support to maintain financial stability and meet its liquidity requirement.

For the year the state sold ROPs or Philippine bonds worth $3.25 billion with an average maturity of ten years. ROPs are medium- to long-term direct and unconditional US Dollar debt securities issued by the government in the domestic and international markets.

At the moment the NG borrows more in US dollar, which is 50 percent of the borrowing mix, while 30 percent are in yen and the balance are borrowings in euros. (LCC)