NG gross borrowings decline as of end-Sept.

THE NATIONAL Government’s (NG) gross borrowings from January to September dropped by 28%, preliminary data from the Bureau of the Treasury (BTr) showed.

Total gross borrowings stood at P1.87 trillion as of end-September, lower than the P2.6 trillion a year earlier.

In the January to September period, gross domestic borrowings fell 27.4% to P1.52 billion.

The government raised P878.25 billion from retail Treasury bonds (RTBs), and P930.38 billion from fixed-rate Treasury bonds (T-bonds).

External gross borrowings declined 31.7% to P345.96 billion in the nine-month period.

In September alone, gross borrowings more than doubled to P488.64 billion, from P215.11 billion a year ago.

Domestic gross borrowings almost tripled to P480.48 billion in September, from P166.95 billion a year ago.

There was a net redemption of Treasury bills (T-bills) worth P19.97 billion in September. The government raised P80 billion in fixed-rate T-bonds during the month.

On the other hand, gross foreign borrowings slid 83% to P8.17 billion in September, which consisted only of project loans.

The government repaid P18.77 billion to foreign creditors during the month.

The government borrows from domestic and foreign sources in order to fund a budget deficit capped at P1.65 trillion this year, equivalent to 7.6% of gross domestic product (GDP).

The NG outstanding debt stood at P13.02 trillion at end-August, up 11.8% year on year.

As of end-June, the country’s outstanding debt as a share of GDP stood at 62.1%. — L.M.J.C. Jocson