The Department of Finance secured the US Treasury support to boost the Philippines’ tax and customs administration.
The commitment was conveyed by US Treasury senior officials led by Undersecretary Jay Shambaugh during a high-level meeting with Finance Secretary Ralph Recto on Oct. 24, 2024 in Washington D.C.
The US Department of the Treasury noted that since 2015, it had provided technical assistance to the Bureau of the Treasury (BTr) to help increase the Philippines’ domestic debt market liquidity and resilience.
It paved the way for an improved primary dealer system, new liability management instruments and a modern financial market infrastructure for government securities.
Building on this success, both parties are exploring more potential partnerships to improve the country’s fiscal management.
These include the possible collaboration for new debt-for-nature and debt-for-climate arrangements to finance the Philippines’ global climate commitments.
Since 2022, the Philippine and US governments concluded two debt-for-nature swaps worth $40 million, allowing the redirection of Philippine debt payments owed to the US towards forest protection, biodiversity conservation and climate action.
Recto highlighted the Philippines’ robust economic outlook and the business-friendly reforms during the meeting.
He identified key sectors ripe for US investments, particularly defense and security, following the Philippine government’s enactment of the Self-Reliant Defense Posture Revitalization Act which aims to boost local defense industries, enhance military modernization efforts and foster partnerships with allied nations.
Recto also underscored the Philippines’ strategic advantage as the US’ key security partner, citing both nations’ longstanding alliance and the Mutual Defense Treaty.
He said the recent Trilateral Partnership between the US, the Philippines and Japan strengthens the country’s position as a premier hub for American businesses, particularly in high-value industries such as semiconductors, renewable energy, power grids, telecommunications, data centers and cybersecurity.
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