August 18, 2022

The national government’s financing position registered a net payment in May this year after settling its loans from the Bangko Sentral ng Pilipinas (BSP), data from the Bureau of the Treasury showed.

One-month before the Duterte administration’s term ended, the national government posted a P282.58 billion net payment, a reversal of the P103.32 billion net borrowings recorded in the same month last year.

The net payment was realized after the national government paid in full its P300 billion loans, representing its provisional advances with the BSP. This was well ahead of the maturity date on June 11, 2022.

The provisional advances is a temporary measure under The New Central Bank Act that allows the central bank to extend short-term financing to the national government in the amount of up to 20 percent of the latter’s average annual income in the past three years.

Based on the Treasury data, the government posted net payment positions both for foreign and domestic borrowings.

In May, the government repaid P23.61 billion worth of foreign obligations, more than the P11.71 billion gross borrowings incurred during the month. This resulted in a net payment of P11 billion.

Offshore borrowings during the month were all programmed loans from the country’s development partners, the Treasury data showed.

On the other hand, domestic net payment reached P270.68 billion.

According to the Treasury report, the government raised P115.21 billion through the sale of retail bonds in May. However, this was offset by the P300 billion repayment to the BSP as well as settlement of P85.9 billion worth of short-term IOUs.

Despite the net payment in May, the national government still has P883.11 billion net borrowings in the first four months of the year.

Earlier, the Treasury bureau reported that the repayment of the cash advance from the central bank had pulled down the national government’s total debt stock as of May.

The national government’s total outstanding debt load settled at P12.495 trillion, down 2.1 percent or P267.415 billion from P12.763 trillion in the previous month.

Of the total debt stock, 30.7 percent was sourced externally while the lion’s share of 69.3 percent was sourced locally.

The national government’s financing position registered a net payment in May this year after settling its loans from the Bangko Sentral ng Pilipinas (BSP), data from the Bureau of the Treasury showed.

One-month before the Duterte administration’s term ended, the national government posted a P282.58 billion net payment, a reversal of the P103.32 billion net borrowings recorded in the same month last year.

The net payment was realized after the national government paid in full its P300 billion loans, representing its provisional advances with the BSP. This was well ahead of the maturity date on June 11, 2022.

The provisional advances is a temporary measure under The New Central Bank Act that allows the central bank to extend short-term financing to the national government in the amount of up to 20 percent of the latter’s average annual income in the past three years.

Based on the Treasury data, the government posted net payment positions both for foreign and domestic borrowings.

In May, the government repaid P23.61 billion worth of foreign obligations, more than the P11.71 billion gross borrowings incurred during the month. This resulted in a net payment of P11 billion.

Offshore borrowings during the month were all programmed loans from the country’s development partners, the Treasury data showed.

On the other hand, domestic net payment reached P270.68 billion.

According to the Treasury report, the government raised P115.21 billion through the sale of retail bonds in May. However, this was offset by the P300 billion repayment to the BSP as well as settlement of P85.9 billion worth of short-term IOUs.

Despite the net payment in May, the national government still has P883.11 billion net borrowings in the first four months of the year.

Earlier, the Treasury bureau reported that the repayment of the cash advance from the central bank had pulled down the national government’s total debt stock as of May.

The national government’s total outstanding debt load settled at P12.495 trillion, down 2.1 percent or P267.415 billion from P12.763 trillion in the previous month.

Of the total debt stock, 30.7 percent was sourced externally while the lion’s share of 69.3 percent was sourced locally.

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