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Gov’t raised P390B in borrowings in April

Gov’t raised P390B in borrowings in April

Provided by Philippine Daily Inquirer.

Gov’t raised P390B in borrowings in April


MANILA, Philippines — Gross borrowings of the Marcos administration ballooned by almost five times in April, driven by the mammoth sale of new 10-year Treasury bonds during the month.

The state raised a total of P390 billion in local and external financing, 4.5 times larger than the P89 billion it borrowed a year ago, according to the latest cash operations report of the Bureau of the Treasury (BTr).

This brought the four-month borrowings of the government to P1.14 trillion, albeit 2.4 percent lower on an annual basis.

READ: Philippine Treasury raises P300B from 10-year notes

At this point, the Marcos administration has already raised 45 percent of its target financing amounting to P2.55 trillion for the year.

Those debts were needed to plug a projected budget gap in 2025, amounting to P1.54 trillion. This is equivalent to 5.3 percent of the country’s gross domestic product.

As it is, the government is carefully timing its fundraising activities as US President Donald Trump’s erratic trade policies rattle financial markets.

Dissecting the report of the BTr, the government borrowed P385 billion from local creditors in April, 4.7 times bigger than the amount it raised in the same month last year.

That included the P300-billion proceeds from the offering of 10-year T-bonds, which was made available to institutional investors through an extended period format, a first for a nonretail bond offering.

Creditors were able to participate in the debt sale or a minimum investment of P10 million.

Since the beginning of the year, gross domestic borrowings have amounted to P836 billion. This, however, was 20 percent lower than the local financing a year ago.

Meanwhile, foreign creditors lent P5.4 billion to the government in April, down by 22 percent.

This sent the January-April external borrowings to P300 billion, representing a 141-percent growth after the Marcos administration frontloaded most of its offshore financing needs last February with the sale of global and euro bonds.

Amid global uncertainties that can keep interest rates elevated and weaken the peso, Finance Secretary Ralph Recto had said that the plan this year was to borrow more domestically. He had said there was still excess liquidity in the local economy looking for viable investment outlets.

 

(2025/06/02-02:10)

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