NG gross borrowings hit P2.6T from Jan-Sept


GROSS borrowings of the national government from January to September this year have reached P2.6 trillion, posting a double-digit growth compared to a year ago.

Latest data from the Bureau of the Treasury showed gross borrowings in the nine-month period surged by 15.1 percent year-on-year from P2.26 trillion in the same period in 2020.

The latest figure is already equivalent to 84.7 percent of the P3.07-trillion programmed gross borrowings for this year.

Gross domestic borrowings as of end-September soared by 22.56 percent year-on-year to P2.096 trillion from P1.71 trillion.

More than half of the gross domestic borrowings were sourced from Fixed Rate Treasury Bonds (P1.099 trillion).

The rest of the amount came from short-term borrowings from Bangko Sentral ng Pilipinas (BSP) at P540 billion and from Retail Treasury Bonds/Premyo Bonds (P463.32 billion). There was also a net redemption of P6.94 billion in Treasury Bills.

Net debt redemption means there were more debts repaid compared to the amount  borrowed during the period.

Foreign borrowings

On the other hand, gross foreign borrowings in the same period shrank by 7.9 percent to settle at P506.67 billion from last year’s P550.27 billion.

The amount was raised through global bonds (P146.17 billion), program loans (P139.98 billion), euro-denominated bonds (P121.97 billion), a project loan (P74.36 billion), and yen-denominated samurai bonds (P24.19 billion).

For September alone, the national government’s gross borrowings amounted to P215.1 billion. This was a reversal from last year’s actual net debt redemption of P209.4 billion.

In September last year, the government repaid P300 billion in short-term borrowing from BSP.

The government borrows to meet its spending requirements as well as to finance its budget deficit.

The national government’s outstanding debt as of end-September this year ballooned to another record high of P11.92 trillion, already breaching the government’s expected level of debt stock of P11.73 trillion by the end of this year.

This was also higher by 27.2 percent, or P2.55 trillion, than the P9.37 trillion in the same period in 2020.

Finance Secretary Carlos G. Dominguez III earlier said the country’s debt-to-GDP ratio is projected to rise to 59.1 percent this year and peak next year at 60.8 percent—slightly above the internationally accepted threshold—before gradually tapering off to 60.7 percent and 59.7 percent in 2023 and 2024.

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