Gross borrowing reached 2.7 trillion pesos


The national government’s gross borrowing had reached 2.7 trillion pesos by the end of October as it continued to raise funds for its pandemic response, preliminary data from the Treasury Office (BTr) showed.

Gross borrowing in the first 10 months decreased by 6% compared to the previous year.

Since the start of the year, government debt has represented 91% of the 3 trillion PPP borrowing plan for the year as a whole. In October alone, the Treasury borrowed 145.78 billion pesos.

Making up the bulk of the total, gross domestic borrowing stood at 133.73 billion pesos that month, 19.9% ​​lower than 166.95 billion pesos in September.

In the same month, treasury bills (treasury bills) resulted in a net repayment worth 37 billion pesos, while 89.89 billion pesos of fixed rate treasury bonds (treasury bonds ) have been sold.

The Treasury repaid 52.7 billion pesos in October.

For the FiIn the first 10 months of the year, gross domestic borrowing amounted to 2.29 trillion pesos.

Meanwhile, gross external borrowing reached P12.049 billion in October, about half of the P24.169 billion posted last year. It was down 75% from September borrowings of 48.156 billion pesos.

October’s total consisted entirely of foreign project loans and there were no foreign program loans.

Total gross borrowing from foreign creditors fell 9.7 percent to 518.71 billion pesos in the first 10 months, from 574.44 billion pesos a year earlier.

The BTr raised 146.17 billion pesos from global bonds, 121.97 billion pesos from euro-denominated banknotes and 24.19 billion pesos from Japanese yen-denominated securities. It also contracted 139.98 billion pesos in program loans and 86.41 billion pesos in project loans.

The government has so far repaid 223.93 billion pesos of its outstanding external debt, which translates to 294.78 pesos of net external borrowing for the 10-month period.

The government is borrowing from local and foreign creditors to finance the budget deficit that has widened since last year after a coronavirus pandemic crippled the economy and reduced tax revenue.

This year’s budgetFicit is expected to reach 9.3% of gross domestic product (GDP). – JPI

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