Philippines

Overseas development assistance (ODA) from Japan, which amounted to around US$3.5bn in 2010 (36% of total) is also likely to decline this year. In addition, Japan is in a more difficult position to finance Philippine debt in the short term. We believe that the planned Samurai bond sale (estimated to be at least US$500mn and usually guaranteed by the Japan Bank for International Cooperation) in April may be at risk. The Philippines raised US$1.1bn in a similar issue in February 2010. We see a chance that the Philippine government may be more inclined to issue dollar or peso-denominated debt as an alternative

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