Government to borrow P892 billion from domestic market
The government plans to borrow P892 billion from the domestic market in the fourth quarter as it spreads out its issuances amid geopolitical tensions, the Bureau of the Treasury said.
The Philippine government intends to borrow P892 billion from the domestic market during the fourth quarter, according to a Treasury memorandum released yesterday. This borrowing plan is more than double the P437 billion planned for the same period last year and 20.4 percent lower than the third quarter's P1.12 trillion. The borrowing will be spread across both short-term Treasury bills and long-term Treasury bonds, with up to P430 billion in bonds and P462 billion in bills.
National Treasurer Sharon Almanza explained that the spread-out issuance is due to front-loaded borrowings last year, leaving fewer bond auctions for the final quarter. The Treasury Board expects potential rate moderation towards the end of the year, which could benefit the government's borrowing curve. Higher local borrowings are attributed to wider budget deficits and delayed fund-raising activities earlier in the year, as well as elevated long-term benchmark yields for government securities and US Treasury yields, which have risen to levels not seen since around 2007.
The government's heavy borrowing from both foreign and domestic sources is aimed at financing its growing budget deficit and pumping prime the economy to mitigate the impact of geopolitical risks.
Written by urgent.news from Philippine Star Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
