Gross borrowings drop 33% as of end-October

GROSS BORROWINGS by the National Government (NG) declined by 32.7% year on year as of end-October, preliminary data from the Bureau of the Treasury (BTr) showed.

According to the BTr, total gross borrowings in the 10-month period stood at P1.85 trillion, lower than the P2.75 trillion seen in the same period last year.

For October alone, gross borrowings increased by 25.4% to P176.56 billion year on year.

For the first 10 months of the year, gross domestic borrowings dropped by 31% to P1.58 trillion from P2.29 trillion a year ago.

In October, gross domestic borrowings plunged by 57.6% to P56.73 billion from P133.73 billion a year ago. The month saw a net redemption of Treasury bills (T-bills) amounting to P51.38 billion, which was offset by the P108.11 billion raised through fixed-rate Treasury bonds (T-bonds).

Meanwhile, external gross borrowings fell by 9.07% to P471.66 billion in the 10-month period from P518.71 billion a year earlier.

Foreign gross borrowings surged by 943.2% to P125.7 billion for the month of October from P12.049 billion posted last year.

This included global bonds, which amounted to P116.93 billion, and project loans, which totaled P8.76 billion.

In October, the Marcos administration raised $2 billion (P118 billion) from its first dollar bond issuance, reflecting “strong investor appetite globally for the republic.”

The government also repaid P5.74 billion to foreign creditors in October.

The government borrows from domestic and foreign sources in order to fund a budget deficit capped at P1.65 trillion this year, equivalent to 7.6% of gross domestic product (GDP).

The NG outstanding debt hit a record P13.52 trillion as of end-September. 

As a share of GDP, outstanding debt rose to 63.7% at the end of September, the highest in 17 years. — Luisa Maria Jacinta C. Jocson