NG borrowings reach P672.24B in end-Sept. ‘10 PDF Print E-mail
Thursday, 28 October 2010 15:41

The national government (NG) domestic and foreign borrowings in the first nine months this year jumped by nearly 60 percent to P 672.24 billion as against the P421.1 billion same period last year.

Bureau of the Treasury (BTr) data show that of the total, domestic borrowings comprise the bulk or 80 percent after it reached P458.4 billion while the balance of P213.84 billion accounts for the foreign borrowings.

Total domestic borrowings as of end-September this year is higher than year-ago’s P252.94 billion and composed of P382.71 billion worth of Treasury bonds (T-bonds) and P119.8 billion of retail Treasury bonds (RTBs).

The NG has paid P44.1 billion more than the short-term debt instrument it issued during the period.

On the other hand, the government’s external debt during the same period rose by 25 percent year-on-year compared to the P168.17 billion.

These loans composed of among others the P44.11 billion worth of its maiden peso-denominated global bonds issued last September, P68.51 billion of dollar-denominated global bonds in January, P51.74 billion worth of yen-denominated Samurai bonds last March and program loans amounting to P30.88 billion and project loans amounting to P18.6 billion.

As part of the government’s bid to maximize the low-interest rate in the country as well as domestic fund sources, its debt profile continue to show expansion in domestic obligations, which as of the end of the first nine months this year accounts of two-thirds of the total.

Also, the government has started to exchange its existing short-term debt instrument for longer tenors to reduce bunching up.

Recently, National Treasurer Roberto Tan said they will conduct a domestic debt exchange within few weeks but declined to give a possible volume to be exchanged.

The government conducts bond swap to lengthen the life of its securities as part of its fiscal management.

Also recently, the NG joined the international financial market and exchanged short-term bond with those maturing in 2034 as well as issued US$ 4.48 million worth of fresh 2021 bonds.

Bonds maturing in 2011, 2013, 2014, 2015, January 2016, October 2016, and in 2017 were swapped with newly-issued 10-year US dollar-denominated bond or the re-opened 2034.

Also, those maturing in January 2019, June 2019, September 2024, October 2024 and those due in 2025, 2030, and 2031 were also exchanged for bonds due 2034.

Relatively, the government’s long-term debt includes the P109.7 billion worth of seven-year bonds, P103.24 billion worth of three-year bonds, P58 billion worth of 10-year debt notes, P49 billion worth of 20-year obligation, P42 billion worth of 25-year bonds, and P20 billion of five-year notes.

Last Updated on Thursday, 28 October 2010 15:45