Gov’t borrowed less, settled more debt in ’11

The government assumed a net borrowing position of P115.3 billion in 2011—67 percent lower than the P351.6 billion reported the previous year, the Bureau of the Treasury (BTr) said.

The state’s finances throughout 2011 were an improvement from that of the previous year, with less new debt coming in while more obligations had been settled.

In 2011, the government incurred a total of P559 billion in new borrowings, 25 percent less than the P747.2 billion reported the previous year.

At the same time, the government paid a total of P443.8 billion, 12 percent more than the P395.5 billion it settled in 2010.

Bureau of the Treasury data showed that the issuance of domestic bonds worth P596.9 billion, as well as global bonds totaling P120.2 billion, accounted for bulk of the debt incurred in 2011.

The government floated P352 billion in regular Treasury bonds. Also, it undertook a P31-billion bond swap and issued P214.1 billion in retail T-bonds.

On the other hand, the BTr also reported a net redemption of Treasury bills worth P232.3 billion.

Further, overseas development assistance amounted to P74.1 billion, including P48.6 billion for programs and P25.5 billion for projects.

Total ODA was 22 percent more than the P60.7 billion reported in 2010. It covered program loans worth P31.8 billion, and project loans totaling P28.9 billion.

Last year, the government paid out a total of P443.8 billion, including P300.6 billion in domestic loan and P143.2 billion in foreign debt.

Total payment for the period was 12 percent more than the P395.5 billion paid out in 2010.

It covered P271.2 billion for local loans and P124.3 billion for overseas obligations.

In December alone, the government’s financing position settled at a net borrowing of P15.6 billion. It was 3 percent higher than the P15.1 billion posted in the same month the previous year.

Also in December, the government incurred P27.2 billion in new foreign loans and P30.4 billion in new domestic debt.

At the same time, the Treasury paid out P33 billion in foreign debt and P8.9 billion in domestic loans.