|
By Chino S. Leyco, Reporter
THE Philippines borrowed less last month compared with a year ago
despite a weaker peso against the US dollar, the Bureau of Treasury
said.
Total gross financing fell by 53 percent to
P34.207 billion compared with the P63.611 billion in the same month
last year. This meant that the government had lesser loan repayments
for the period.
The bulk of state borrowing at P31.308 billion
was sourced from domestic sources, including the sale of fixed-rate
Treasury bonds at P25.438 billion and T-bills at P5.87 billion.
Total external financing during the month
reached P2.899 billion.
In the first eight months of the year, total
gross borrowings fell to P365.994 billion year-on-year.
In the first six months, the country’s total
obligations stood at P3.963 trillion, or 4.8-percent higher than the
P3.782-trillion outstanding in the same period last year.
Of the total debt outstanding, P2.303 trillion
was owed to domestic creditors, while the remaining P1.660 trillion
was due to foreigners.
The government’s foreign debt dropped less
than a percent year-on-year due to the peso’s strength vis-à-vis
the dollar. At end-June this year, the peso was at 44.79 against the
dollar from 46.35 in the same period a year ago.
The domestic component of government
obligations, however, rose 9 percent from last year, as it borrowed
more through the issuance of T-bills and bonds.
Compared with the end-May levels, the first-half
borrowings, however, had inched up 1 percent, driven by a 2-percent
increase in foreign obligations due to a weaker peso month-on-month.
The increase in foreign debt of P31 billion from
the end-May level was due to the P2-billion impact of the
depreciation of third currencies against the US dollar and
P32-billion effect of the depreciation of the peso against the
greenback.
Domestic debt at end-June, however, rose at a
slower 0.3 percent from the previous month.
Finance Secretary Margarito Teves said that by
next year, the country’s obligations would grow by 1.4 percent, or
slower than the 4 percent this year. This assumes that the peso will
average at 45 against the US dollar and the economy will grow by 6.1
percent to 7.1 percent.
With the slower growth, the government expects
that the country’s total obligations next year to reach P3.907
trillion, which is equivalent to 45 percent of the total economy, a
ratio considered manageable based on international standards.
BSP approves govt loan from BNP Paribas
In a related development, the Bangko Sentral ng
Pilipinas (BSP) has allowed the government to engage in a buyers
credit agreement and commercial loan from BNP Paribas to support
President Arroyo’s bridge program.
BSP Deputy Governor Armando Suratos said the
Monetary Board gave the go signal to the $257.403-million loan for
the Mega Bridges for Rural and Urban Development Project of the
Department of Public Works and Highways.
The loan consists of 23.407.76 billion Japanese
yen buyers’ credit facility and 4.130.78 billion Japanese yen
commercial loan facility from BNP Paribas.
The buyers credit component would mature
in 14 years, and carries a 2.49-percent interest, while the straight
loan component matures in five years and has a 2.4-percent interest.
Suratos said the project involves the
construction, installation and establishment of 10 girder-type
flyovers and 72 national bridges along the country’s congested
highways and road network.
-- With Maricel E. Burgonio
|
