Philippines: Govt to borrow P250B in Sept – BTr

• Aug 27, 2021

THE government plans to borrow P250 billion from local sources next month, according to the Bureau of Treasury (BTr).

It will be larger than the P200 billion programmed for this month and the P160 billion set for September 2020 if the plan is followed.

Treasury bills (T-bills) are expected to raise P75 billion, while Treasury bonds (T-bonds) are seen to secure P175 billion.

Of the T-bills amount, P25 billion would be sourced through the 91-day, 182-day and 364-day tenors. Of the T-bonds figure, P35 billion would be generated from the five-year, P70 billion from seven-year, and another P70 billion from the 10-year tenors.

The government intends to borrow P2.49 trillion from domestic sources this year, according to figures from the Department of Budget and Management.

T-bills and fixed-rate T-bonds will bring in P50 billion and P1.90 trillion, respectively, while short-term borrowing from the Bangko Sentral ng Pilipinas will bring in P540 billion.

Due to the issuing of P45.09 billion in Treasury bills and P779.86 billion in fixed-rate bonds, the government’s domestic funding climbed to P1.82 trillion in the first seven months of 2021.

The government also raised P463.32 billion from retail Treasury bonds and premyo or prize bonds during this time. The government also borrowed P540 billion from the central bank for a short-term loan.

The government borrowed P2.27 trillion throughout the course of the seven-month period.

Finance Secretary Carlos Dominguez 3rd said that, despite the government’s acquisition of new debt to address the Covid-19 emergency, public borrowing is still well within sustainable levels.

During the House Committee on Appropriations’ deliberations for the P5.02-trillion 2022 budget on Thursday, Dominguez emphasized, “that the increase in our debt level is only temporary.”

“It did not stem from profligate public spending but rather resulted from a universal shock that deteriorated the financial positions of almost all countries around the world,” he noted.

Source: https://www.manilatimes.net/2021/08/27/business/top-business/govt-to-borrow-p250b-in-sept-btr/1812513