Gross borrowing reached 2.58 trillion pesos in 2021

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GROSS BORROWINGS of the National government from domestic and external sources reached 2.58 trillion pesos in 2021 as it continued to Iffund its response to the pandemic, data from the Office of the Treasury (BTr) showed.

The bureau’s latest treasury operations report showed total borrowing fell 5.9 percent year-on-year to 2.58 trillion pesos at the end of December 2021.

Local debt accounted for 78% of this total, while the rest came from foreign creditors.

In December alone, total gross borrowing resulted in a net repayment of 196 billion pesos, meaning that debts repaid were larger than new borrowings.

The total gross domestic debt that month resulted in a net repayment of 236 billion pesos. This was less than the net redemption of 465 billion pesos recorded in the same month the previous year.

BTr raised 360 billion pesos from retail treasury bills in December, while there was a net redemption of treasury bills worth 56 billion pesos.

It repaid 540 billion pesos to the central bank for its advances.

Meanwhile, gross external borrowing in December reached P39.86 billion, down nearly 75% year-on-year.

That month, the government took out 13.74 billion pesos in new project loans and 26.12 billion pesos in program loans from foreign sources.

FULL YEAR 2021
Breaking down total gross borrowing for the year, local debt accounted for 2.01 trillion pesos of the total, up 0.59% year-on-year.

Disaggregated, the bulk of local gross borrowing came from fixed rate Treasury bonds which amounted to 1.26 trillion pesos. Another 823.35 billion pesos came from retail treasury bills. Meanwhile, retail onshore dollar bonds reached a total of 80.84 billion pesos.

The treasury bills resulted in a net redemption of 153.34 billion pesos.

Meanwhile, gross external borrowing reached 568.67 billion pesos, down 23.4 percent year-on-year.

In detail, the office raised 146.17 billion pesos of global bonds, 121.97 billion pesos of euro-denominated notes and 24.19 billion pesos of Japanese yen-denominated securities.

The government also recorded 166.1 billion pesos in program loans as well as 110.24 billion pesos in project loans.

The government borrows from local and foreign sources to Iffinance a growing budget deficit after the coronavirus pandemic crippled the economy and reduced tax collections.

Outstanding debt hit a record 12.03 trillion pesos at the end of January this year after taking another zero-interest loan from the central bank and borrowing locally.

The level of national government debt increased by 16.5% year-on-year. — Jenina P. Ibanez

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