National Treasurer Rosalia De Leon said the Philippine government will not be aggressive in prepaying its foreign currency- denominated debts solely because of hikes in U.S. interest rates.
She told PNA that movements in interest rates will not have immediate impact on government's debts since majority of these liabilities have fixed rate.
"About 99 percent (of our debt) are fixed," she said.
De Leon said the government takes advantage of the low interest rate environment by swapping old debt instruments with new ones that have lower interest.
"This is why we do liability management...We offer new bonds to retire the high coupon bonds when we see the economics," she said.