Govt borrowings hit P134B in July

THE national government’s gross financing in July increased to over P134 billion, bringing the year-to-date borrowings to P1.85 trillion, data released by the Bureau of the Treasury (BTr) showed.

The actual P134.53 gross borrowings in July soared by 11,301 percent from only P1.18 billion in the same month a year ago.

During the month, DOMESTIC FINANCING OF P66.83 BILLION reversed a P4.30-billion net redemption in July 2019.

Local borrowings were sourced through the issuance of P36.83billion and P30- billion worth OF TREASURY BILLS AND fiXED- RATE bonds, respectively

External borrowings, meanwhile, surged by 2005 percent to P67.69 billion from P3.21 billion a year ago.

Total external financing in June was sourced through P3.96billion worth of project loans and P63.73 billion generated via program loans.

IN THE FIRST SEVEN MONTHS OF the year, government borrowings climbed by 27.58 percent to P1.85 trillion from P1.45 trillion during the same period in 2019.

For full-year 2020, the government plans to borrow P3 trillion from domestic and external sources this year. The amount is 195-percent higher than 2019’s P1.01 trillion.

Gross domestic financing is programmed to reach P2.21 trillion, while external borrowings are expected to hit P785.61 billion.

The Treasury bureau would raise P48 billion by issuing Treasury bills and P1.67 TRILLION THROUGH FIXED-RATE TREASURY bonds.

It also plans to borrow P500 billion from the Bangko Sentral ng Pilipinas though short-term loans. Of this amount, P300 billion were already disbursed to the bureau through its three-

month repurchase agreement signed with the central bank in March.

In terms of foreign financing, the government plans to raise P466.81 billion through program loans, P29.07 billion through project loans, and P289.73 billion through the issuance of bonds as well as from other inflows.

Last year, the government borrowed P1.01 trillion from creditors, a 13.17-percent growth from P897.55 billion in 2018.