By Aubrey Rose A. Inosante, Journalist
THE NATIONAL Government’s (NG) total borrowings fell in November due to reduced domestic debt issuances, as reported by the Bureau of the Treasury (BTr).
Figures from the BTr indicated that overall gross borrowings plummeted by 48% to P65.05 billion in November compared to P125.46 billion during the same month last year.
From the previous month, gross borrowings decreased by 50% from P129.26 billion in October.
Domestic borrowings diminished by 60% to P48.88 billion in November compared to P121.02 billion recorded a year earlier.
This comprised P30 billion in fixed-rate Treasury bonds (T-bonds) and P18.88 billion in Treasury bills (T-bills). In November, the issuance of T-bonds dropped by 70% from P100 billion in the same month last year.
Conversely, gross external debt surged by 263.91% to P16.17 billion in November from P4.44 billion a year prior.
This included P8.7 billion in project loans and P7.47 billion in program loans.
“The year-over-year decrease in gross borrowings, despite the broader budget deficit figures for the month, may largely be due to the diminished volume of matured National Government debt/government securities during the month, which fundamentally lowered NG debt servicing expenses, particularly regarding principal payments, and led to reduced NG borrowings,”
stated Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort in a Viber message.
In the January-to-November timeframe, BTr data revealed that gross borrowings rose by 18.73% to P2.49 trillion from P2.1 trillion in the same period last year.
A significant portion, or 76.65%, of the gross borrowings for the 11-month period originated from domestic sources.
Domestic debt increased by 17% to P1.91 trillion over the 11-month term, compared to P1.64 trillion a year ago.
In detail, fixed-rate T-bonds accounted for P1.1 trillion, with P584.86 billion in retail T-bonds, and P228.26 billion in T-bills.
Meanwhile, external debt during the initial 11 months rose by 24.4% to P582.41 billion, up from P460.75 billion the previous year.
This total was made up of P256.24 billion in global bonds, P223.04 billion in program loans, and P86.97 billion in new project loans.
This year’s borrowing strategy is projected at P2.57 trillion, with P1.92 trillion sourced domestically and P646.08 billion obtained from international sources, according to the most recent Budget of Expenditures and Sources of Financing data.
Finance Secretary Ralph G. Recto previously indicated that the government intends to issue US dollar or euro-denominated bonds in the first half of 2025. It aims to secure at least P300 billion from these issuances.
Mr. Ricafort mentioned that government securities (GS) in December were expected to be lower “due to the holiday atmosphere.”
This trend is anticipated to continue “until GS maturities begin to increase around April 2025,” he stated.
