As the government’s debt stock balloons along with the surging domestic coronavirus cases that have prompted the government to reimpose stringent lockdown protocols, sovereign credit rating is seen to be at risk.
Nicholas Mapa, economist at ING Philippines, said in a research note that as the renewed lockdowns weigh on the economy and on consumer sentiment, there have been rumblings of a possible downgrade as the government runs a second month of budget deficits.
“With revenue streams challenged, complicated more by the downscaling of collections from [corporations] due to the passage of CREATE, the Philippines may continue to pile up debt while the economic engines remain stuck in…
Keep on reading: Credit downgrade looms on piling debt, weak GDP