Manila's total borrowings surge as shortfall soars
04/01/2009 | 06:19 PM
MANILA, Philippines - The Philippines’ total borrowings more than doubled for the first two months of the year after the country’s deficit surged, the Bureau of Treasury (BTr) said.
From January to February, the government borrowed P252.02 billion, 157 percent higher than borrowings during the same period last year. Manila loaned P98.17 billion in the first two months of last year.
The increase was the result of a government decision to raise cash from both local and foreign sources to plug a programmed deficit of P177.2 billion this year, or 2.2 percent of the Philippines’ gross domestic product (GDP).
During the same period, the deficit more than doubled to P67 billion from P32.9 billion after the government spent more under the Arroyo administration’s P330 billion Economic Resiliency Plan and collected less taxes.
Manila’s foreign borrowings also rose, quadrupling to P89.39 billion in the first 60 days of the year from P21.44 billion in the same period last year. The Philippines also doubled its foreign commercial borrowing to $1.5 billion from $750 million as it expected a wider budget shortfall.
Likewise, the Philippines decided to source more official development assistance (ODA) loans from multilateral lending institutions such as the World Bank, Asian Development Bank (ADB), Japan Bank for International Cooperation (JBIC), and others.
An estimated P9.622 billion worth of ODA loans were disbursed from the World Bank’s food crisis response project and P7.056 billion from ADB under its government justice reform program.
A separate P1.32 billion worth of project loans from international lenders were also disbursed in the first two months of the year.
Meanwhile, Manila’s local debts also rose after it hiked domestic borrowing through the sale of domestic bonds undertaken by the BTr.
From P76.73 billion for January to February last year, the Philippines’ domestic borrowing surged to P162.63 billion this year.
The government issued and sold P144.5 billion worth of five- and seven-year benchmark bonds as it retired P136.6 billion worth of existing bonds in January.
The undertaking was part of measures to boost the liquidity of the domestic bond market.
On the other hand, Manila was able to settle P228.57 billion worth of foreign-denominated debt, including treasury bills and bonds in the first two months. The amount is P121 billion more than the P107.47 billion it paid during the same period last year.
This year, Manila decided to increase its foreign borrowings to $3.1 billion instead of only $2.6 billion and its domestic borrowings to P442 billion from P386.5 billion to plug the deficit and reduce the country’s maturing financial obligations. - GMANews.TV
From January to February, the government borrowed P252.02 billion, 157 percent higher than borrowings during the same period last year. Manila loaned P98.17 billion in the first two months of last year.
The increase was the result of a government decision to raise cash from both local and foreign sources to plug a programmed deficit of P177.2 billion this year, or 2.2 percent of the Philippines’ gross domestic product (GDP).
During the same period, the deficit more than doubled to P67 billion from P32.9 billion after the government spent more under the Arroyo administration’s P330 billion Economic Resiliency Plan and collected less taxes.
Manila’s foreign borrowings also rose, quadrupling to P89.39 billion in the first 60 days of the year from P21.44 billion in the same period last year. The Philippines also doubled its foreign commercial borrowing to $1.5 billion from $750 million as it expected a wider budget shortfall.
Likewise, the Philippines decided to source more official development assistance (ODA) loans from multilateral lending institutions such as the World Bank, Asian Development Bank (ADB), Japan Bank for International Cooperation (JBIC), and others.
An estimated P9.622 billion worth of ODA loans were disbursed from the World Bank’s food crisis response project and P7.056 billion from ADB under its government justice reform program.
A separate P1.32 billion worth of project loans from international lenders were also disbursed in the first two months of the year.
Meanwhile, Manila’s local debts also rose after it hiked domestic borrowing through the sale of domestic bonds undertaken by the BTr.
From P76.73 billion for January to February last year, the Philippines’ domestic borrowing surged to P162.63 billion this year.
The government issued and sold P144.5 billion worth of five- and seven-year benchmark bonds as it retired P136.6 billion worth of existing bonds in January.
The undertaking was part of measures to boost the liquidity of the domestic bond market.
On the other hand, Manila was able to settle P228.57 billion worth of foreign-denominated debt, including treasury bills and bonds in the first two months. The amount is P121 billion more than the P107.47 billion it paid during the same period last year.
This year, Manila decided to increase its foreign borrowings to $3.1 billion instead of only $2.6 billion and its domestic borrowings to P442 billion from P386.5 billion to plug the deficit and reduce the country’s maturing financial obligations. - GMANews.TV
