US$1b for storm recovery

		The bond offer comes after the government announced that it would have to raise revenues sharply to pay for relief and repairs after tropical storm Ketsana and typhoon Parma. -- PHOTO: AP

MANILA - THE Philippine government announced on Saturday that it successfully raised US$1 billion (S$1.39 billion) in 25-year global bonds amid a growing need for rehabilitation funds after two destructive storms.
This marks the third international global bond issue for the Philippines this year and the first 25-year bond offer since January 2007, the finance department said in a statement.
The bond offer comes after the government announced that it would have to raise revenues sharply to pay for relief and repairs after tropical storm Ketsana and typhoon Parma struck one after another from September 26.
The two storms caused massive flooding in the capital Manila and surrounding areas as well as killer landslides in mountainous areas in the north, resulting in almost 800 deaths and at least 21.6 billion pesos (S$63.8 million) in damage to agriculture and infrastructure.
President Gloria Arroyo's economic aides have expressed concern this week that storm damage may cause the budget deficit this year to shoot past 300 billion pesos.
They see reconstruction costs and slower economic activity as putting pressure on Manila's full-year budget deficit target ceiling of 250 billion pesos, or 3.2 per cent of the projected gross domestic product for the year. -- AFP