Gov’t borrowings slightly up to P213.1 B in Q1

Government borrowings in the first quarter of the year grew almost flat from a year ago, data from the Bureau of the Treasury (BTr) showed.

Latest Treasury data showed that borrowings in the first three months of 2017 amounted to P213.12 billion, slightly higher than the P212.92 billion recorded in the same period last year.

For March alone, government debt decreased nearly 71 percent to P41.76 billion from P143.95 billion a year ago.

The government borrows from the local and foreign creditors to finance its budget deficit and pay maturing debt.

Of the total amount borrowed in the first quarter, P124.94 billion came from external lenders while P88.18 billion came from domestic creditors.

Foreign debt during the period came mostly in the form of global bonds, which reached P99.57 billion.

The government raised $500 million in fresh 25-year global bonds at a rate of 3.7 percent, and also successfully switched $1.5 billion of previously issued bonds in January this year. The bonds were issued in February.

Proceeds will be used to fund foreign currency denominated bonds and budgetary support on the back of the Duterte administration’s plan to usher in the golden age of infrastructure.

Aside from global bonds, the government also acquired P7.41 billion in project loans and P17.96 billion in program loans from international multilateral agencies, such as the World Bank, the Asian Development Bank and Japan International Cooperation Agency.

Domestic borrowings, meanwhile, came in the form of T-bills and T-bonds.

For 2017, the government is programmed to borrow P631.29 billion, lower than last year’s borrowing program by 9.22 percent.

The bulk of credit will be pesodenominated and raised through Tbonds and T-bills at P505.03 billion.