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Q4 borrowing capped at P135b

The Bureau of Treasury said Monday it will keep a domestic borrowing cap of P135 billion in the last quarter of the year.

The agency said in a notice posted in its Web site it maintained the fourth-quarter local borrowing ceiling through the auction of treasury bills and bonds in October to December 2015 to finance this year’s budget deficit.

The government plans to sell P20 billion worth of 91-, 182-, and 364-day debt papers on Oct. 7, Nov. 4 and Dec. 9. It will also sell P25 billion worth of treasury bonds through auctions on Oct. 22, Nov. 20 and Dec. 17.

The auction of the various debt paper with short and long tenors were the same as programmed in the first three quarters of the year.

The government is keeping a borrowing mix of 14 percent foreign and 86 percent domestic in 2015.

The government plans to borrow about P95 billion from the international market and P605.1 billion from domestic sources.

The government in 2014 borrowed P369 billion—the lowest amount since P275 billion in 2002. The gross borrowings last year were also 33.5 percent lower than P555 billion in 2013.

Meanwhile, outstanding debt papers issued by the national government slightly declined to P3.855 trillion in the January-to-August period from P3.858 trillion recorded a month ago, as more treasury bonds matured.

Government debt increased P160 billion or 2.9 percent over a 12-month period to a record P5.84 trillion in July, as the Treasury issued more securities and the weak peso inflated the value of foreign currency debt.

Data from the Treasury showed outstanding government debt jumped P160 billion from P5.68 trillion in July 2014.

Both domestic and foreign debt climbed, as borrowings continued to outpace debt payments. Domestic debt rose 2.7 percent in July to P3.86 trillion from a year ago. It also increased by P19.56 billion from the end-June figure due to the net issuance of government securities amounting to P19.36 billion and upward adjustment of P200 million in the peso value of onshore dollar bonds.

Foreign debt rose 3.2 percent year-on-year to P1.99 trillion, on the back of weaker peso which inflated the value of dollar debt by P17.49 billion, the Treasury said.

“This was tempered by the downward revaluation of third currency debt against peso equivalent to P6.73 billion. Net availment for the month though not significant contributed to P0.68 billion increase in external debt,” The Treasury said.

Meanwhile, national guaranteed debt declined P11.9 percent year-on-year to P402.64 billion. The figure, however, was 0.2 percent higher than the end-June figure on a monthly basis as the combined effect of currency adjustments raised the peso value of debt by P2.62 billion.

“This more than offset the net repayment of domestic guarantees amounting to P0.05 billion [P50 million] and the P1.84 billion reduction in value of external guarantees due to third currency depreciation against the US dollar,” the Treasury said.

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