Govt eyes P200-billion domestic borrowing in August


The government will borrow P200 billion from domestic sources next month, the Bureau of Treasury said on Tuesday.


This is lower than the P235 billion planned for this month, but similar to the August 2020 borrowing plan.


Treasury bills (T-bills) are expected to generate P60 billion, while Treasury bonds are expected to raise P140 billion (T-bonds).


Of the T-bills amount, P15 billion would be sourced through the 91-day, 182-day and 364-day tenors. Of the T-bonds figure, P35 billion would be secured from the 10-year, seven-year, 20-year and 11-year tenors.


The government intends to borrow P2.58 trillion from domestic sources this year, according to figures from the Department of Budget and Management.


T-bills and fixed-rate T-bonds will generate P50 billion and P1.53 trillion, respectively, while short-term borrowing from the Bangko Sentral ng Pilipinas is estimated to add P1 trillion.


Due to the issuing of P120.30 billion in Treasury bills and P389 billion in fixed-rate bonds, the government’s domestic funding climbed to P1.51 trillion in the first five months of 2021.


The government borrowed a total of P463.32 billion from retail Treasury bonds and premyoor prize bonds during this period. The government also secured P540 billion from the central bank for a short-term loan.


The government’s overall borrowings picked up by 23.88 percent to P1.76 trillion over the five-month period, compared to P1.42 trillion at the same time in 2020.



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