The Marcos administration plans to borrow P629 billion from local creditors in the first quarter of 2025 to bridge its budget deficitponeclub, the Bureau of the Treasury (BTr) said.
Figures showed the amount was more than double the P310-billion domestic financing plan set by the government in the final quarter of 2024.
Dissecting the latest onshore borrowing program, P264 billion will be raised via short-dated Treasury bills (T-bills) in the first three months of 2025, while P365 billion will come from the offerings of longer-term Treasury bonds (T-bonds).
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FEATURED STORIES BUSINESS Chavit Singson launches own digital bank, eyes 20M users BUSINESS Peso may further depreciate to 60 vs $1 territory in 2025 BUSINESS BIZ BUZZ: Almendras hangs up Ayala hatThe BTr is looking to sell T-bills worth P88 billion each in January, February and March. The Treasury lined up four T-bill auctions per month.
Meanwhile, the government wants to borrow a total of P125 billion via T-bonds in January and a smaller P115 billion in February. The BTr will close the first quarter with another P125 billion in T-bond offerings in March.
Article continues after this advertisementFor next year, the Marcos administration is targeting to borrow P2.55 trillion from creditors at home and abroad to plug a projected budget hole amounting to P1.54 trillion, or equivalent to 5.3 percent of the country’s gross domestic product.
Article continues after this advertisement Foreign investorsBy sources of financing, the government will borrow P507.41 billion from foreign investors in 2025.
Philex Mining president and CEO Eulalio Austin Jr. said they have an application to explore a nickel tenement adjacent to the firm’s site in Zambales.
The benchmark Philippine Stock Exchange Index (PSEi) shed 0.49 percent, or 36.67 points, to close at 7,400.33.
Article continues after this advertisementThe remaining P2.04 trillion is targeted to be raised domestically, of which P60 billion will be via T-bills and P1.98 trillion via T-bonds.
best slot machines to playAll of this, in turn, is expected to push the government’s outstanding debt to P17.35 trillion by the end of 2025.
Article continues after this advertisementAccording to Finance Secretary Ralph Recto, the government wants to eventually lessen the share of foreign borrowings to 10 percent—from the current level of around 25 percent—to minimize foreign exchange risks that can bloat the peso-value of external debts.
But the finance chief said this fiscal goal would not be achieved within the term of President Marcos, adding that the government will be diversifying its sources of external financing to lock-in cheaper rates as much as possible. —Ian Nicolas P. Cigaral
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