Title: Marcos Administration Records Decrease in Borrowings for First Nine Months of the Year
The Bureau of the Treasury recently released a report stating that the Marcos administration has experienced a slight decrease in both foreign and local borrowings during the first nine months of the year.
Between January and September 2023, the gross financing recorded a total of P1.782 trillion, reflecting a two percent drop compared to the same period last year when it amounted to P1.824 trillion.
This decline in gross financing is primarily attributed to a seven percent decrease in domestic borrowing, which fell from P1.478 trillion to P1.376 trillion as of September. The report from the Treasury highlighted the majority of the government’s financing obtained consisted of long-dated debt papers, reaching P965.83 billion.
The government also achieved success in retail Treasury bonds sales, totaling P283.76 billion, as well as selling P126.84 billion of short-term IOUs.
In contrast, foreign borrowing saw a notable increase of 17 percent, rising from P345.66 billion in the first three quarters of 2022 to P405.74 billion. The government generated P163.61 billion through the sale of global bonds as of September.
Additionally, President Marcos sought support from development partners, securing loans of P145.06 billion for government programs and P97.07 billion for various projects.
Notably, in September alone, the national government’s gross borrowing experienced a significant deceleration, dropping from P444.87 billion in the same month the previous year to P103.25 billion. The Treasury report attributed this substantial drop to the sale of retail treasury bonds in September 2022, which amounted to P376.68 billion.
September’s domestic borrowings reached a total of P92.07 billion, while foreign financing recorded P11.16 billion.
Overall, the Bureau of the Treasury’s report reveals the Marcos administration’s efforts to manage borrowings and financing as it navigates the economic challenges faced by the Philippines.