Philippine Economy Talk

**minicarph** · October 25th, 2018 05:50 PM

Gawa tayo fake taxi productions dream, pag mataba ang pasahero, relyebohan mo ko

**dreamur** · October 25th, 2018 06:16 PM

Originally Posted by minicarph

Gawa tayo fake taxi productions dream, pag mataba ang pasahero, relyebohan mo ko

Game OB. I love BBWs!

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**uls** · October 25th, 2018 06:30 PM

whatda... what happened to this thread

busy lang ako kanina ngayon lang ako bumalik napunta na sa fake taxi

**sean-archer** · October 25th, 2018 07:42 PM

Originally Posted by uls

whatda... what happened to this thread

busy lang ako kanina ngayon lang ako bumalik napunta na sa fake taxi

Credits to missy

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**Monseratto** · October 26th, 2018 08:31 PM

hmmm...

Budget Secretary Benjamin Diokno earlier said that “the rule of thumb is that a country with a debt-to-GDP [gross domestic product] ratio below 60 percent is fiscally sound ... The Philippines is comfortably below that ...”

PHL gov’t debt balloons to record P7.16T as of end-Sept. | Money | GMA News Online

**dreamur** · October 26th, 2018 09:36 PM

San Miguel Foods IPO - P85/share, minimum 500 shares

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**Monseratto** · October 31st, 2018 12:53 PM

Need to borrow more to pay off it's other debt...

Falling Peso Hits Debt-Laden Philippine Companies

San Miguel and its energy units have to pay off the most dollar debt in the next five years at $3.3 billion, based on publicly available data. The beer maker that had expanded to infrastructure enters into currency swaps to manage its long-term borrowings, according to regulatory filings.

The conglomerate and units including oil refiner Petron Corp. and SMC Global Power Holdings Corp. have been borrowing in pesos in the past three years to refinance dollar obligations. The company declined to provide details of its hedging.

**uls** · October 31st, 2018 01:03 PM

^^^

posted June 21, 2018

Originally Posted by uls

The Fed kept interest rates near zero for several years

Funds went to emerging markets for higher returns

Demand for EM bonds encouraged EM corporates to borrow in dollars

and borrow they did

trillions of $$$ in past several years

see purple line

now that US interest rates are rising there’s less incentive to remain in EM

funds go back home

dollar exodus = dollar scarcity = dollar rises against EM currencies

EM corporates have tons of dollar-denominated debt they have to repay

see the problem?

**uls** · October 31st, 2018 01:17 PM

there's a wall of maturing EM dollar-denominated debt starting next year

EM currencies are now much weaker against the dollar

so those EM corporates (who earn in local currency) need more local currency to buy dollars (coz it's more expensive today) to pay debt

more expensive than when they sold the dollars they borrowed years ago

see the problem?

**uls** · October 31st, 2018 01:23 PM

i'm not done yet...

So the Fed is doing reverse QE (QT -- quantitative tightening)

so that's reducing the global supply of dollars

and higher interest rates attracting dollars back to the US

and the US govt is borrowing more (coz of Trump's tax cuts + more spending)

so more treasury issuance is sucking the global supply of dollars

So you got dollar scarcity at a time when EM corporates need tons of dollars to pay maturing obligations

see the problem?