The national government’s gross borrowing reached 2.6 trillion pesos at the end of September as it continued to raise funds to respond to the coronavirus crisis, preliminary data from the Treasury Office (BTr) showed.
Gross borrowing in the first nine months increased 15.143% compared to the same period last year.
In September alone, the Treasury raised 215.106 billion pesos.
Local borrowing, which made up the bulk of the total, stood at 166.95 billion pesos this month, up 65.32% from the 100.97 billion pesos in August.
No amortization payments were recorded in September.
Meanwhile, gross foreign borrowing reached 48.156 billion pesos in September, up 18.68 percent from last year’s 40.58 billion pesos. It almost tripled from 16.77 billion pesos in August.
September’s total consisted of P7.86 billion in foreign project loans and P40.29 billion in foreign program loans.
With 6.59 billion pesos in amortization payments, net foreign borrowing reached 41.56 billion pesos.
For the nine-month period, gross domestic borrowing reached 2,096 billion pesos, up 22.56 percent from the same period last year.
This consisted of P $ 1.09 trillion in treasury bonds, P $ 463.32 billion in retail treasury bonds, and P $ 540 billion in short-term borrowings from the central bank. The government also recorded the repayment of 6.93 billion pesos in treasury bills.
Net local borrowing reached 2,043 billion pesos after BTr paid 405.4 billion pesos in maturing bonds.
Gross foreign borrowing in the nine months to September reached 506.67 billion pesos, down 7.92 percent from a year ago.
Broken down, the BTr raised 146.17 billion pesos from global bonds, 121.97 billion pesos from euro-denominated banknotes and 24.19 billion pesos from Japanese yen-denominated securities. It also contracted 139.98 billion pesos in program loans and 74.36 billion pesos in project loans.
The government has repaid 219.11 billion pesos of its outstanding external debt so far, resulting in 287.56 billion pesos in net external borrowing for the nine-month period.
The government plans to borrow P3 trillion from local and foreign sources this year to plug in a budget ofFicit reaches 9.3% of gross domestic product (GDP). – Jenina P. Ibañez