national-budget-4

Philippines: Government borrowings reach P132.2 B in February

MANILA, Philippines –  Government borrowings rose almost five times to P132.231 billion in February after the issuance of $2 billion worth of global bonds during the month, data from the Bureau of the Treasury (BTr) showed.

According to Treasury data, the February borrowings rose by about 390 percent from the P26.908 billion recorded in the same month last year.

This brought the total borrowings to P171.358 billion during the first two months.

Of the total amount borrowed in February, P100.569 billion came from external creditors while the remaining P31.662 billion was sourced domestic lenders.

The bulk of foreign debt during the period came in the form of global bonds, which reached P99.566 billion.

The government raised $500 million worth of fresh 25-year global bonds at a rate of 3.7 percent and also successfully switched $1.5 billion of previously issued bonds in January. The bonds were issued in February. 

Proceeds will be used to fund foreign currency denominated bonds and budgetary support on the back of the Duterte administration’s plan to usher in the golden age of infrastructure.

Another source of foreign borrowings also came in the form of project loans from international multilateral agencies, which amounted to P1.003 billion in February.

Domestic borrowings, meanwhile, composed of P1.662 billion in treasury bills and P30 billion in fixed rate treasury bonds.

The government borrows from the local and foreign creditors to finance its budget deficit and pay maturing debt.

For 2017, the government is programmed to borrow P631.29 billion, lower than last year’s borrowing program by 9.22 percent.

Source: http://www.philstar.com/business/2017/04/26/1693839/government-borrowings-reach-p132.2-b-february