Borrowings down by 22% in July

Awash with cash, the government borrowed over a fifth less at end-July than it did in the same seven-month period last year.

Bureau of the Treasury (BTr) data showed that government borrowings from January to July totaled P229.2 billion, 22-percent lower than the P297.3 billion in the same period of 2013.

External borrowings or loans from multilateral lenders at end-July reached P86.7 billion. Domestic or locally sourced borrowings, meanwhile, amounted P142.5 billion.

Despite the year-to-date decline, borrowings were faster during the first month of the second half.

In July alone, borrowings totaled P55 billion, more than the P50 billion borrowed from both foreign and local lenders in the same month last year. External borrowing contributed P29.6 billion, while the domestic contribution was P25.4 billion.

Borrowings in July were also almost double that of June’s P26.6 billion.

The BTr earlier noted that there remains liquidity in the market, aided by its own debt management schemes. Ben O. de Vera

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