PH debt piled up in 1st 8 months

The government’s financing position in the eight months to August stood at a net borrowing of P220 billion, more than 14 times the P15.4 billion recorded in the same period last year, according to the Bureau of Treasury (BTr).

From January to August, the amount of new borrowings continued to rise while payments declined further by a double-digit rate.

During the period, the government incurred a total of P510 billion in fresh borrowings, up by 48 percent year on year from P343.9 billion.

At the same time, the government paid a total of P290 billion—12 percent less than the P328.5 billion it settled in the same period last year.

The issuance of P179.8 billion in retail treasury bonds and P66 billion in global bonds, as well as P279.3 billion in regular domestic bonds, accounted for the bulk of the government’s debt this year, Treasury data showed.

In the first eight months, the government floated P41.3 billion in five-year treasury bonds, P133.3 billion in seven-year notes, P57.4 billion in 10-year notes, P38 billion in 20-year notes and P9.3 billion in 25-year notes.

On the other hand, the treasury reported a net redemption of P44.9 billion in treasury bills.

Also, overseas development assistance reached P29.8 billion, covering P12.1 billion for projects and P17.6 billion for programs.

Total ODA was 4 percent less than the P31.1 billion reported in the same period last year, which covered P16.1 billion for project loans and P15 billion for program loans.

As of August, the government paid out a total of P290 billion, covering P39.8 billion in foreign loans and P250.2 billion in domestic debt.

Total payment for the period was 12 percent less than the P328.5 billion paid out in the same period last year, which covered P94.5 billion in overseas obligations and P234 billion in local loans.

In August alone, the government’s financing position settled at a net borrowing of P6.7 billion—a reversal from the net payment of P18.2 billion in the same month last year.

That same month, the government incurred P2.1 billion in new foreign loans and P51.1 billion in new domestic debt.

At the same time, the Treasury paid out P7.6 billion in foreign debt and P38.9 billion in domestic loans.