Gov’t financing position rose to P1.27 trillion in Sept
The national government’s financing position grew by 2.7 percent in the nine months ending Sept. 30, with net inflows totaling P1.27 trillion.
This year-on-year increase came up as the monthly readout for September slashed the year’s running tally by P117.38 billion.
In September, the government amortized a total of P237.93 billion worth of Treasury bills and bonds and P8.26 billion worth of project loans.
Over the nine-month period, the government repaid a total of P924.9 billion worth of locally issued securities and P196.48 billion worth of foreign loans.
As of end-September, the single biggest chunk of domestic debt incurred rang up at P1.05 trillion worth of Treasury bonds.
Meanwhile, the biggest piece of the foreign debt pie was P191.97 billion worth of US dollar-denominated bonds.
Data from the Bureau of the Treasury show that from January to September, gross foreign borrowings were pegged at P434.6 billion. Gross domestic borrowings were recorded at P1.96 trillion.
At the end of September, the total outstanding debt of the Philippine national government decreased for the second month in a row, settling at P17.455 trillion.
The national debt stock was P13 billion less than the P17.468 trillion at end-August recorded at the end of August.
“The continued decrease reflects the government’s sound fiscal discipline, strategic borrowing strategy and proactive liability management, supported by steady market conditions and robust domestic investor confidence,” the Treasury said on Thursday.
The country’s financial obligations peaked at P17.564 trillion last July, as did domestic debt at P12.108 trillion. Funds from foreign lenders reached a new peak at P5.482 trillion in September.
The Treasury said that in September, total repayments exceeded new issuances. This offset the impact of an upward revaluation from peso depreciation.
This developed as Fitch Ratings warned that headwinds from American tariffs were already affecting the fiscal consolidation efforts of several governments in the Asia-Pacific region, including the Philippines.
The credit rating agency said policy responses to the weaker global demand and uncertainty would be key toward easing the impact of the headwinds on sovereign credit profiles.
