The Philippines may need to recalibrate its borrowing program after being upgraded to upper-middle income country (UMIC) status, according to a report by Philstar Biz
Analysts noted that the upgrade could gradually close the door on concessional loans and development aid typically reserved for lower-income nations. This shift may compel the government to explore alternative financing sources with less favorable terms.
The recalibration is seen as essential to maintain fiscal discipline and ensure sustainable debt management as the country transitions to a higher income classification. Policymakers are urged to proactively adjust borrowing strategies to mitigate potential risks.