Gov’t to borrow P150B from local market in 2nd quarter

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The Bureau of the Treasury plans to issue a total of P150 billion in domestic debt paper in the second quarter of 2013, higher by 25 percent than the P120 billion in local IOUs lined up in the previous quarter.

Similarly, the domestic borrowing plan for the April-June quarter represented a 41-percent jump from the P106.5 billion in the same period last year.

The increase in the planned domestic borrowing followed the statement of Finance Secretary Cesar V. Purisima Monday that the government was looking at fully sourcing its financing needs from local lenders.

The government’s program for the borrowing mix in 2012 was 75 percent for domestic and 25 percent for foreign. The mix was at 60-40 a few years ago, but the continued push for greater reliance on domestic borrowings in line with the government’s foreign currency-averse liability management program tilted the balance in favor of local debt.

But Purisima said the Philippines maintained its presence in the international financial market mainly because of its outstanding obligations.

“We may also go to the global market when there are opportunities for liability management exercises,” he added, referring to outings such as debt swaps meant to lengthen the maturity of existing foreign obligations.

In a notice to dealers of government securities, National Treasurer Rosalia de Leon said the Treasury was scheduled to offer in three monthly auctions a total of P12 billion in 91-day treasury bills, P18 billion in 182-day securities and P30 billion in 364-day paper.  Ronnel W. Domingo

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  • garcia677

    The uninformed Filipinos can’t fathom as to why our gov’t. borrows but has a billion dollar fund intended for loan. It’s imperative that the government must disclosed the true financial status of the government so as not to create distrust.

    • http://pulse.yahoo.com/_JEMNLLYAP5EA7SM3A6QUOGV62Q Chris

      it’s called refinancing.. existing loans to be repaid by new loans.. don’t expect no borrowings if we are still in budget deficit. The people only need to read the news. It’s not distrust, it’s more of financial education.

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