Gov’t net borrowings down to P33.58B in first 7 months

The government’s net borrowings in the seven months to July fell to P33.58 billion from the P175.9 billion recorded in the same months last year, according to the Bureau of the Treasury (BTr).

The considerable decline in borrowings was observed amid the continuing efforts of the government to consolidate its finances and manage its debts, particularly by lengthening the average maturity of its obligations.

BTr data showed that the bulk of the government’s debt during the seven-month period was incurred through the issuance of global and local bonds. The total global bonds issued reached P119.68 billion, while local bonds amounted to P219.1 billion.

The government floated P54.77 billion in global bonds in January and another P64.91 billion in March.

About half, or P104 billion, of the treasury bonds issued as of July represented 10-year debt paper. The BTr also issued P104 billion worth of retail T-bonds in March.

Also, overseas development assistance (ODA) obtained during the period reached P18 billion, including P13.8 billion for projects and P4.2 billion for programs.

The total ODA in the first seven months of the year was just about half of the P34.1 billion posted in the same period last year, which covered P14.66 billion for project loans and P19.48 billion for program loans.

As of July, the government paid a total of P276.2 billion in debt—P86.6 billion in foreign loans and P189.6 billion in domestic obligations.

The total payment for the period was 5 percent more than the P264 billion settled in the same period last year, which covered P96.4 billion in foreign obligations and P167.6 billion in local loans.

In July alone, the government posted a net borrowing of only P10.27 billion, which was only about a third of the P34.39 billion posted last year. The July figure represented P2.5 billion in foreign loans and P7.78 billion in domestic obligations.

Further, the total payment for the month reached P1.95 billion, which was 58 percent less than the P4.6 billion paid last year.