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Treasury: Govt borrowings increased by 50% in July

BORROWINGS of the Aquino administration rose by close to 50 percent during the first seven months of the year after the government increased the sourcing of funds from the domestic market to take advantage of the liquidity.

Data from the Bureau of Treasury (BTr) showed that the total gross borrowings in January to July reached P456.81 billion, up by 47 percent from the P309.8 billion in 2011.

Domestic borrowings accounted for bulk of the debt after it grew by 111 percent to P363.05 billion from P172.1 billion last year.

Foreign borrowings, meanwhile, dropped by 32 percent to P93.76 billion from P137.69 billion last year.

Payments for domestic and external debt amounted to P243.48 billion, bringing the total net borrowings to P213.32 billion for the period. In 2011 the government only made payments of P33.58 billion.

The government borrows funds from the international and domestic market to augment the shortfall of domestic revenues that fund its various programs.

The bulk of the local borrowings for the first seven months of the year was in the form of fixed rate treasury bonds worth P219.73 billion. The chunk of it, however, was the P179.79 billion from the floatation of retail treasury bonds issued in March.

The government made a net redemption of treasury bills amounting to P36.47 billion during the period.

Payments for domestic debt amounted to P211.25 billion, bringing local net borrowings to P151.79 billion, from the P17.495-billion net redemptions last year.

Of foreign borrowings, much of the amount consisted Philippine bonds worth P66.03 billion sold in January.

Project loans totaled P10.74 billion while program loans were at P16.98 billion.

Payments for external debt amounted to P32.23 billion, bringing the net external borrowings as of end-July to P61.53 billion. In 2011 the BTr reported P51.07 billion in net external borrowings.

For July alone, the government’s total gross borrowings reached P69.35 billion, more than five times higher than the P12.22 billion borrowed during the same month in 2011.

Gross external borrowings reached to P1.81 billion, while local borrowings stood at P67.53 billion.

(VG Cabuag)

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