MANILA, Philippines — The government has assured the public that it has enough cash to finance public services in case it fails to borrow P250 billion from the debt market in March due to the Ukraine crisis.
National Treasurer Rosalia de Leon told The STAR that the 27th offering of retail Treasury bonds (RTBs) would bring in the cash needed by the government to sustain its programs and projects amid the war between Russia and Ukraine.
“We have strong cash chest following good RTB results, which will close on Monday,” De Leon said in a text message.
As such, De Leon said the government could sustain its programs and projects even if the Bureau of the Treasury misses out on its financing program in March. Borrowing costs in the domestic market and abroad are going up across the board as the escalating tensions between Russia and Ukraine put pressure on the debt market.
Last week, Treasury bill (T-bill) rates rose across the board. Rates for the 91-day T-bills rose by 8.9 basis points to 0.899 percent, while that for the 182-day jumped by 9.1 basis points to 1.157 percent.
The 364-day debt papers also recorded a 9.3-basis point rate hike to settle at 1.568 percent. De Leon attributed the increases to concerns about the geopolitical conflict in Eastern Europe.
The Treasury widened its borrowing plan to P250 billion in March from P200 billion in February despite the challenges posed by the growing turmoil in Europe and its impact on world prices, especially oil.