Government borrowing up over 74% in May

OVERALL GOVERNMENT borrowing in May grew 74.55% as the Bureau of the Treasury (BTr) accepted more bids at its twicea-week auction of government securities, especially on the shorter-dated notes.

According to BTr data, gross borrowing was P57.97 billion in May, against P33.21 billion a year earlier and P36.69 billion in April.

Of the total, P55.44 billion was borrowed domestically, up 97.87% from a year earlier.

The BTr awarded P26.44 billion worth of Treasury bills and P29 billion worth of Treasury bonds that month, compared to the P3.31 billion and P24.72 billion it raised in bills and bonds a year earlier, respectively.

In May the central bank tightened benchmark rates by 25 basis points, a highly anticipated move that prompted the market to borrow more shorter- dated tenors in the BTr auctions.

Funds borrowed overseas meanwhile fell to P2.54 billion in May from P5.18 billion a year earlier due to a reduction in project loans.

In the five months to May, overall gross borrowing fell 33.18% year on year to P302.58 billion.

This is equivalent to 34.07% of the P888.23 billion worth of borrowing planned for the year. —