THE NATIONAL Government’s (NG) gross borrowings rose by over 8% in September, driven by a sharp increase in external financing, data from the Bureau of the Treasury showed.
Total gross borrowings increased by 8.17% to P139.45 billion in September from P128.91 billion in the same month a year earlier.
Domestic borrowings, which accounted for 84.33% of the September total, declined by 2.44% to P117.6 billion from P120.55 billion a year ago.
These consisted of P86.29 billion in fixed-rate Treasury bonds and P31.31 billion in net Treasury bill issuances.
On the other hand, gross external borrowings surged by 161.15% to P21.85 billion in September from P8.37 billion last year.
External financing during the month consisted of P12.54 billion in new project loans and P9.31 billion in program loans. There were no global bonds in September.
“The rise in September borrowings was largely driven by higher external financing as the government diversified its funding sources and tapped opportunities in the global market,” Reyes Tacandong & Co. Senior Adviser Jonathan L. Ravelas said in a Viber message.
In the January-to-September period, NG gross borrowings were largely unchanged, dipping by 0.06% to P2.394 trillion from P2.395 trillion in the same period a year earlier.
The end-September figure represented 87.55% of the P2.73-trillion gross borrowing program for 2026.
Domestic borrowings, which accounted for 74.93% of the nine-month total, declined by 8.52% to P1.79 trillion from P1.96 trillion a year ago.
These consisted of P1.37 trillion in fixed-rate Treasury bonds and P424.98 billion in net Treasury bills.
External borrowings in the first nine months jumped by 38.07% to P600.04 billion from P434.6 billion a year ago. These consisted of P314.37 billion in global bonds, P166.92 billion in program loans, and P118.75 billion in new project loans.
Mr. Ravelas said gross borrowings remain on track to stay within the full-year program, barring unexpected fiscal needs or market disruptions in the fourth quarter.
“Despite the uptick, year-to-date borrowings remain broadly on track at about 88% of the full-year program, leaving a manageable funding requirement for the fourth quarter,” he said.
“Unless there are significant fiscal surprises or market disruptions, the government appears well-positioned to stay within its borrowing target, reflecting prudent debt and liquidity management,” he added.
To stay within the P2.73-trillion annual program, the government has roughly P340.4 billion in remaining borrowing room for the fourth quarter, consisting of about P120.2 billion in domestic borrowings and P220.1 billion in external borrowings, based on the full-year 70:30 domestic-to-external financing mix. — Justine Irish D. Tabile
