NG borrowings up 66%

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    The national government’s gross borrowings as of end-July posted a 66.21 percent hike as both external and domestic financing increased versus the previous year’s level.

    According to the Bureau of the Treasury’s (BTr) latest cash operations report, total borrowings in January to July amounted to P839.75 billion, significantly higher than the P505.22 billion recorded a year ago.

    As of end-July, foreign borrowings amounted to P228.69 billion, 27.86 percent up versus the P178.86 billion in the first seven months of 2018.

    The government was able to tap external sources through project and program loans, worth P23.61 billion and P64.69 billion, respectively.

    Meanwhile, the government raised P78.04 billion in January through a global bond issuance, while Panda and euro-denominated bonds were issued in May, amounting to P18.86 billion and P43.49 billion, respectively.

    Domestic borrowings jumped 87.23 percent to P611.06 billion seven months into the year, from P326.36 billion in the same period a year ago.

    The BTr raised P235.83 billion from its five-year retail treasury bonds sale in March, while the government also issued P261.5 billion worth of fixed-rate treasury bonds and P113.72 billion in the form of treasury bills, over the seven-month period.

    In July, the government posted a net redemption of P1.09 billion, a reversal of the P44.4-billion borrowings recorded a year ago.

    Domestic borrowings posted a P4.305 billion redemption for the month. In July last year, local financing stood at P21.32 billion

    Foreign borrowings fell by 86.07 percent to P3.22 billion from the P23.07 billion in July 2018.