Gross government borrowings in September amounted to P27.68 billion, which brought the total gross borrowings to P279.94 billion in the first nine months this year.
While the gross borrowings in September was slightly higher than the gross government borrowings in the same period last year which only amounted to P274.76 billion, the net government borrowings this year proved significantly lower.
Net borrowings, as of September, only amounted to P76.14 billion, or 30 percent lower than the net borrowings in the same period in 2014, which amounted to P108.24 billion.
The drop in net borrowings was traced to higher net repayments, particularly on domestic debt.
Net repayment on foreign debt amounted to P32.08 billion, as of September, or 29 percent higher than the net repayment on foreign debt for the same period in 2014, which amounted to P24.84 billion.
But the increase in net repayment was due to the 291-percent increase in net repayment in domestic debt as
of September.
As of the same period, net repayment on domestic debt amounted already to P86.87 billion, versus only P29.75 billion as of September of 2014.
The gross borrowings and net repayments on foreign and domestic debts indicate government preference for domestic sources of funds, rather than overseas to avoid foreign exchange risks and other cost
of borrowing money from foreign sources.
As of September 2015 gross borrowings from domestic sources accounted for 62 percent of total gross borrowings from domestic sources, while the remaining 38 percent came from foreign sources.