PH ended 2012 with net borrowings of P538B

New debts surged 71% to P955B on Treasury issuances

By: Ronnel W. Domingo, March 11th, 2013 04:24 AM

MANILA, Philippines—The national government’s financing position in 2012 showed a net borrowing of P538.2 billion, or almost five times the P115.3 billion recorded in 2011, according to the Bureau of the Treasury.

The state’s finances last year was shaped mainly by a surge in the amount of new borrowings on the back of declining payments.

In 2012, the government incurred a total of P955.1 billion in new borrowings, up 71 percent year on year from P559 billion. At the same time, the government paid a total of P416.98 billion, less 6 percent than the P443.8 billion it settled in the previous year.

Treasury data showed that the biggest contributors to new debts in 2012 were the issuance of retail treasury bonds worth a total of P367.8 billion as well as P96.8 billion worth of global bonds and P430.5 billion in regular domestic bonds.

The government floated P62.2 billion in five-year treasury bonds, P154.4 billion in seven-year paper, P134.7 billion in 10-year securities, P58.5 billion in 20-year bonds and P20.6 billion in 25-year securities. However, the Treasury also reported a net redemption of P20.2 billion worth of treasury bills.

Overseas development assistance (ODA) loans and grants reached P59.8 billion, including P18.2 billion for projects and P41.6 billion for programs. The total ODA was 19-percent lower than the P74.1 billion reported in 2011, which covered P25.5 billion for project loans and P28.6 billion for program loans.

In 2012, the government paid out a total of P416.98 billion, including P86.6 billion in foreign loans and P330.4 billion in domestic debt.

Total payment for the period was 6 percent less than the P443.8 billion paid out in 2011, which covered P143.2 billion for overseas obligations and P300 billion for local loans.

Fresh domestic borrowings jumped 119 percent to P798.5 billion from P364.7 billion. This pushed the share of local debt in the overall financing program to 83.6 percent. On the other hand, fresh foreign borrowings dipped by 19 percent to P156.6 billion from P194.3 billion—bringing the share in total fresh inflows to 16.4 percent.

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