Government borrowings rise 33% in June

MANILA, Philippines - Government borrowings grew 33 percent to P35.47 billion in June from P26.61 billion a year ago due to an increase in loans from foreign sources, data from the Bureau of Treasury showed.

Domestic borrowings accounted for 58 percent of the total loans in June despite the level dropping 21 percent to P20.515 billion from P26.098 billion last year.

These borrowings are mainly from fixed rate treasury bonds (T-bonds) and bills (T-bills) auctioned by the government on a regular basis.

Loans from external sources, meanwhile, soared to P14.960 billion from only P517 million in the same month last year.

Project loans increased rapidly to P1.455 billion from P512 million, while program loans soared to P13.505 billion from P5 million.

Borrowings made by the government complement its revenue collections to help fund its various projects and programs, and pay for maturing debt. 

In the first half of the year, the government borrowed P186.247 billion, seven percent higher than the P174.203 billion in the same period last year.

Foreign loans rose 67 percent to P95.397 billion from P57.082 billion, while domestic borrowings fell 22 percent to P90.850 billion from P117.121 billion.

The increase in loans from external sources were mainly due to a sharp 106 percent jump in program loans to P46.477 billion as of June from P22.558 billion in the same period last year.

Project loans also surged 144 percent to P14.267 billion from P5.851 billion, while debt sourced from global bonds exchanged went up 21 percent to P34.653 billion from P28.673 billion.

Government borrowings in 2014 reached P369.061 billion, 33 percent lower than the P554.701 billion incurred in 2013.