|
By Chino S. Leyco, Reporter
THE government cut its borrowings in the first
quarter as it recorded a
lower budget deficit year on year and the peso strengthened against
the dollar, according to the Department of Finance (DOF).
Total net financing dropped more than three
folds in the first three months this year to P13.32 billion compared
with P54.78 billion in the same period last year.
The first-quarter figure likewise is lower than
the government’s program for the period of P17.57 billion.
Gross financing however increased more than two
folds to P152.43 billion at end-March this year from P49.881 billion
last year.
The government borrowed more from local sources
with P87.9 billion in Treasury bill sales and P42.18 billion in
fixed rate Treasury bond sales.
Net domestic borrowings reached P3.932 billion
due to P51.81 billion in net repayments last February.
The Bangko Sentral ng Pilipinas has urged DOF to
borrow more from local sources to take advantage of the peso’s
appreciation against the greenback and cut the country’s
dependence on foreign debt.
Total project loans sourced from official
development assistance (ODA) or foreign donors amounted to P9.388
billion, mostly credits extended by the International Bank for
Reconstruction and Development at P5 million, and the Asian
Development Bank at P224 million.
The government also issued $500 million in
global bonds last January, lower than last year’s $1 billion in
foreign borrowing.
Loan payments reached P12.97 billion.
Based on the national financing program,
government borrowings are expected to further decline to P17.7
billion this year from P94.7 billion last year.
The government reported a budget gap of P51.6
billion in the first three months this year, down P0.4 billion year
on year, mainly as a result of the government’s sale of shares in
Manila Electric Co.
The government has programmed to balance its
budget this year, which means it will further reduce its borrowing
to support its internal operations.
A balanced budget should also help preserve the
low interest rate environment.
|
