Latest Stories

Gov’t borrowings fell sharply in first 7 months

With obligations on the wane, PH now said to rely less on credit


The government’s borrowings significantly fell in the first seven months of 2013 from a year ago, substantiating officials’ claims that the country was becoming less dependent on credit.

Documents from the Department of Finance showed that the borrowings in the first seven months fell by an annual rate of 35 percent to P297.38 billion.

The government borrows funds to pay maturing obligations and cover the deficit in its budget.

The reduced borrowings was attributed to the decline in maturing obligations during the period. The drop in borrowings came about as maturing liabilities paid by the government fell year-on-year by 29 percent to P173.55 billion.

The government borrows from both local and foreign sources. This year, however, it chose to reduce its foreign borrowings in favor of domestically sourced credit.

In particular, it has decided not to sell bonds in the international capital market and limit its foreign borrowings by securing loans from development institutions such as the World Bank and the Asian Development Bank.

Domestic borrowings accounted for P272.03 billion of total government borrowings. This marked a year-on-year drop of 25 percent.

Domestic borrowings are incurred mainly from the sale of treasury bills and bonds in the local market.

Foreign borrowings, which were all concessional loans from development lenders, amounted to P25.35 billion from January to July. This was down by 73 percent year-on-year.

The government’s decision to forego the sale of bonds in the international capital market this year was meant to help reduce pressures on the exchange rate.

In particular, the government wanted to temper substantial appreciation pressures on the peso that led to the currency’s nearly 7-percent rise against the US dollar last year.

Although the Bangko Sentral ng Pilipinas believes that it is healthy for the market to determine the exchange rate, the regulator will also need to intervene from time to time to prevent the local currency from fluctuating too sharply.

The appreciation of the peso in 2012 adversely affected the export sector.

The traders and manufacturers explained that the competitiveness of Philippine-made goods in the international market suffered because of the peso’s sharp appreciation last year.

Follow Us

Follow us on Facebook Follow on Twitter Follow on Twitter

Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Bangko Sentral ng Pilipinas , Business , Department of Finance , economy , money , national debts , News

  • joboni96


    to free up p350 billion per year in government budget
    for national development projects

    may natira pang reserves
    dadagdagan pa ng ofw’s every year

    kaya lang mga collaborators
    ang mga nasa bangko sentral

Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94


  • 16 CADPI sugar refinery workers now out of danger after toxic shower in Batangas
  • PNP denies Purisima’s involvement in questionable deal with courier firm
  • Pro-Russian insurgents hold journalist hostage
  • UN heads say Syria aid needs ‘largely unanswered’
  • Captain who left doomed ferry had 40 years at sea
  • Sports

  • UP nips St. Benilde; Adamson blasts RTU in Filoil women’s caging
  • Kevin Garnett responds to Raptors’ GM F word
  • Albert Pujols hits 500th HR of major league career
  • UST posts twin kill in Filoil pre-season cup opening day
  • Wizards beat Bulls in OT to take 2-0 series lead
  • Lifestyle

  • Entering the monkhood a rite of passage
  • Haneda International Airport: A destination on its own
  • Wanted: Beauty queen with a heart that beats for the environment
  • Kim Atienza: At home with art and design
  • Life lessons I want to teach my son
  • Entertainment

  • Bollywood Oscars, film stars come to Florida
  • Ex-Fox exec denies allegations in sex abuse suit
  • Kris Aquino backtracks, says Herbert Bautista and her are ‘best friends’
  • Summer preview: Chris Pratt enters a new ‘Galaxy’
  • Bon Jovi helps open low-income housing in US
  • Business

  • Toyota sells 2.58 million vehicles, outselling GM
  • McDonald’s 1Q profit slips as US sales decline
  • SEC approves SM’s P15B retail bond offer
  • $103M Vista Land bonds tendered for redemption
  • Oil slips to $102 as US crude supplies seen rising
  • Technology

  • Viber releases new design for iPhone, comes to Blackberry 10 for the first time
  • Engineers create a world of difference
  • Bam Aquino becomes Master Splinter’s son after Wiki hack
  • Mark Caguioa lambasts Ginebra teammates on Twitter
  • Brazil passes trailblazing Internet privacy law
  • Opinion

  • One-dimensional diplomacy: A cost-benefit analysis of Manila’s security deal with Washington
  • No ordinary illness
  • Reforest mountains with fire trees and their kind
  • Day of the Earth
  • When will Chinese firm deliver new coaches?
  • Global Nation

  • Palace thanks Estrada for successful HK mission
  • Hong Kong accepts PH apology; sanctions also lifted
  • China won’t budge, wants PH gov’t to apologize to HK
  • Cha cha train to follow Obama visit?
  • No word yet on inking of US-PH defense pact during Obama visit
  • Marketplace