ASEAN KEY DESTINATIONS
Philippines borrowing declines
The Philippines government’s borrowing declined by almost a third in the first seven months of the year, data from the Bureau of the Treasury showed. Gross borrowings reached P309.8 billion at end-July, or 29.6 percent lower than the P439.941 billion in the same seven-month period last year.
Fresh loans contracted from foreign sources fell 11 percent to P137.692 billion from the P154.773 billion in 2010, but the government spent P86.614 billion in amortization resulting in net external borrowings of P51.078 billion.
The bulk of foreign borrowings came from the sale of bonds and other inflows at P119.683 billion.
Besides bond issuances, the government also sourced its funding from project and program loans at P18.009 billion. Project loans are those with counterpart funding from the government and involve the provision of equipment from donors.
At end-July, the government also floated a total of P103.967-billion worth of retail Treasury bonds but spent P189.603 billion for redemption and amortization of notes. Fixed rate Treasury bond issuances reached P219.122 billion while the domestic bond exchange netted P30.981 billion for a net domestic borrowing of P17.495 billion during the first seven months of this year.
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