Gov’t borrowings reach P171.64B in 1st 5 months

The government’s financing position in the five months to May ballooned to a net borrowing of P171.64 billion—much higher than the P3.68 billion recorded in the same period last year, according to the Bureau of  Treasury (BTr).

The state’s finances from January to May surged as the amount of new borrowings jumped amid a significant decline in payments.

In the five-month period, the government incurred a total of P377.85 billion in fresh borrowings—up by 39 percent year on year from P270.88 billion.

At the same time, the government paid a total of P206.2 billion, which was 23 percent less than the P267.2 billion it settled in the same period last year.

Treasury data showed that the biggest contributors to new debts during those five months were the issuance of P179.8 billion in retail treasury bonds, as well as P66 billion in global bonds and P137.04 billion in regular domestic bonds.

The government floated P72.52 billion in seven-year T-bonds, P38.75 billion in 10-year notes and P25.77 billion in 20-year notes.

On the other hand, the Treasury also reported a net redemption of T-bills worth P34.23 billion.

Overseas development assistance reached a total of P29.21 billion, including P13.32 billion for projects and P15.88 billion for programs.

Total ODA was 163 percent more than the P11.11 billion reported in the same period last year, which covered P9.81 billion for project loans and P1.3 billion for program loans.

As of May, the government paid out a total of P206.2 billion, including P25 billion in foreign loans and P181.2 billion in domestic debts.

Total payment for the period was 23 percent less than the P267.2 billion paid out in the same period last year, which covered P78.95 billion for overseas obligations and P188.25 billion for local loans.

In May alone, the government’s financing position settled at a net borrowing of P9.24 billion, just about a quarter of the P34.41 billion posted in the same month last year.

Also in May, the government incurred P11.53 billion in new foreign loans and P18.73 billion in new domestic debt.

At the same time, the Treasury paid out P6.17 billion in foreign debts and P14.84 billion in domestic loans.