Public, private sector borrowings rose in H1 on easing rates

The public and private sectors took advantage of higher liquidity and lower interest rates to raise money by issuing debt securities to lenders in the first half of the year as the coronavirus pandemic took hold, according to the central bank.

In a statement, the Bangko Sentral ng Pilipinas said that, based on preliminary data, the domestic claims of nonbank financial institutions grew by 4.8 percent to P6.58 trillion in the first semester from P6.28 trillion at the end of 2019.

“This increase is due mainly to the rise in the claims on central government, the private sector and the depository corporations,” the central bank said.

These nonbank financial institutions include trust entities; private and public insurance corporations; holding companies; government financial institutions (specifically government-owned or -controlled corporations engaged in financial intermediation); nonmoney market funds covering unit investment trust funds and investment companies, and other financial intermediaries and auxiliaries consisting of offshore banking units and nonbanks without quasi-banking functions.

Claims on the national government rose by 10.6 percent to P1.65 trillion at the end of the first half of 2020 from P1.49 trillion at the end of 2019.

Meanwhile, claims on the private sector increased by 2.5 percent in the first six months of the year to P3.27 trillion from P3.19 trillion as of end-2019.