Under this plan, public and private debtors would individually renegotiate their debts with foreign creditors.

Citibank, Manila's primary creditor, is owed a total of $1.8 billion by the Philippine Government and private debtors.

Intensified Problems Seen He added that he also expected financial problems to intensify as corporate and private debtors depleted their cash and faced defaults.

The analysts added that the political impact of the relief package might be more direct: although the rate cuts will cover only about 25 percent of the total loan portfolio of Mexican banks, they are expected to provide some help to 75 percent of private debtors.