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NG borrowing up 58 percent in 2016

The borrowing activities of the national government (NG) in 2016 amounted to P220.938 billion, with the bulk of the funds borrowed from the domestic market in line with the plan to borrow from domestic sources and limit so-called shocks from external risk events.

According to data from the Bureau of the Treasury (BTr), the NG’s financing activities totaled P220.938 billion last year, expanding by 57.97 percent, compared to the P92.851 billion recorded in 2015.

The borrowings in 2016 was the third highest over a five-year period, with 2015 borrowings reaching P92.851 billion, 2014 with P175.239 billion, 2013 with P319.118 billion, and 2012 with the highest
amounting to P538.172 billion.

The government borrowed principally from the domestic markets this year, with net domestic borrowings amounting to P245.051 billion, expanding drastically by 88.54 percent compared to 2015’s P28.069 billion.

Its net external borrowings last year totaled P24.113 billion, sharply lower than in 2015, when this amounted to P64.782 billion.

Gross domestic borrowings for the year amounted to P357.497 billion, with fixed-rate Treasury bonds (T-bonds) accounting for P233.952 billion, retail T-bonds with P100.004 billion, and Treasury bills (T-bills) at P23.501 billion.

Gross external borrowings for the year totaled P95.644 billion, of which project loans accounted for P18.789 billion, program loans with P35.598 billion, and global bond exchanges of another
P41.257 billion.

NG debt payments in 2016 amounted to P536.657 billion, the slight increase attributed to interest payments outpacing amortization, data from the BTr showed.

NG debt payments grew by 0.4 percent to P536.657 billion for the year, from 2015’s P534.140 billion.

Over a period of five years, 2015 show NG debt payments of P534.140 billion, P515.007 billion in 2014, P559.017 billion in 2013 and P729.774 billion in 2012.

Interest payments made by the government for the year amounted to P304.454 billion, shrinking by 1.6 percent, compared to P309.364 billion the previous year.

Of the total, domestic interest payments amounted to P205.426 billion, decreasing by 4.9 percent compared to 2015’s P215.589 billion. Foreign interest payments accounted for P99.028 billion of the total, growing by 5.3 percent, compared to P93.775 billion in 2015.

Total amortization for the year amounted to P232.203 billion, expanding by 3.1 percent, compared to 2015’s P224.776 billion.

Broken down, local amortization payments amounted to P112.446 billion, decreasing by 37.6 percent, compared to payments made in 2015 of P154.729 billion.

Foreign amortization payments accounted for P119.757 billion of the total, which was 41.6 percent higher compared to only P70.047 billion in 2015.

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