THE GIST
NEWS AND FEATURES
Global Philippines Fine Living
INSIGHTS
INVESTMENT STRATEGY
Economy Stocks Bonds Currencies
THE BASICS
Investment Tips Explainers Retirement
WEBINARS
2024 Mid-Year Economi Briefing, economic growth in the Philippines
2024 Mid-Year Economic Briefing: Navigating the Easing Cycle
June 21, 2024
Investing with Love
Investing with Love: A Mother’s Guide to Putting Money to Work
May 15, 2024
retirement-ss-3
Investor Series: An Introduction to Estate Planning
September 1, 2023
View All Webinars
DOWNLOADS
948 x 535 px AdobeStock_433552847
Economic Updates
Monthly Economic Update: Fed cuts incoming   
DOWNLOAD
equities-3may23-2
Consensus Pricing
Consensus Pricing – June 2025
DOWNLOAD
Two people discussing a chart on a tablet
Economic Updates
Policy Rate Update: Dovish BSP Narrows IRD 
DOWNLOAD
View all Reports
Metrobank.com.ph How To Sign Up
Follow us on our platforms.

How may we help you?

TOP SEARCHES
  • Where to put my investments
  • Reports about the pandemic and economy
  • Metrobank
  • Webinars
  • Economy
TRENDING ARTICLES
  • Investing for Beginners: Following your PATH
  • On government debt thresholds: How much is too much?
  • Philippines Stock Market Outlook for 2022
  • No Relief from Deficit Spending Yet

Login

Access Exclusive Content
Login to Wealth Manager
Visit us at metrobank.com.ph How To Sign Up
Access Exclusive Content Login to Wealth Manager
Search
THE GIST
NEWS AND FEATURES
Global Philippines Fine Living
INSIGHTS
INVESTMENT STRATEGY
Economy Stocks Bonds Currencies
THE BASICS
Investment Tips Explainers Retirement
WEBINARS
2024 Mid-Year Economi Briefing, economic growth in the Philippines
2024 Mid-Year Economic Briefing: Navigating the Easing Cycle
June 21, 2024
Investing with Love
Investing with Love: A Mother’s Guide to Putting Money to Work
May 15, 2024
retirement-ss-3
Investor Series: An Introduction to Estate Planning
September 1, 2023
View All Webinars
DOWNLOADS
948 x 535 px AdobeStock_433552847
Economic Updates
Monthly Economic Update: Fed cuts incoming   
June 30, 2025 DOWNLOAD
equities-3may23-2
Consensus Pricing
Consensus Pricing – June 2025
June 25, 2025 DOWNLOAD
Two people discussing a chart on a tablet
Economic Updates
Policy Rate Update: Dovish BSP Narrows IRD 
June 19, 2025 DOWNLOAD
View all Reports
BusinessWorld 3 MIN READ

More domestic borrowings eyed to fund wider deficit

July 2, 2025By BusinessWorld
Related Articles
Loans used as reserves hit PHP 8 billion December 12, 2023 Gov’t eyes global bonds in 1st half January 9, 2024 Gov’t to borrow PHP225B from local market in August July 25, 2023

The government is still planning to source additional borrowings from the domestic market to fund the ballooning budget deficit.

“We’re still finalizing the details of our borrowing program, but we’re still targeting the 80-20 [local to foreign] funding split,” National Treasurer Sharon P. Almanza said in a Viber message.

The government is looking to hike its borrowing program to PHP 2.6 trillion this year from PHP 2.55 trillion previously, to fund the ballooning budget deficit.

The Development Budget Coordination Committee (DBCC) last week raised the budget deficit ceiling for 2025 to P1.561 trillion or 5.5% of gross domestic product (GDP) from 5.3% previously.

The DBCC had lowered this year’s revenue collection target to PHP 4.52 trillion from PHP 4.64 trillion previously. It trimmed the expenditure program for this year to PHP 6.08 trillion from PHP 6.18 trillion previously.

Asked where the government will source the additional borrowing requirements for this year, Finance Secretary Ralph G. Recto said in a text message: “Domestically.”

Gross borrowings by the National Government fell by 6.67% to PHP 1.33 trillion in the first five months of the year as both domestic and external borrowings declined.

External borrowings slumped by 21.54% to PHP 305.94 billion during the period, while domestic borrowings fell by 12.74% to PHP 1.02 trillion.

Reyes Tacandong & Co. Senior Adviser Jonathan L. Ravelas said the move to raise this year’s borrowing plan reflects the government’s need to fund its wider budget deficit.

“There’s definitely room for large issuances, especially retail Treasury bonds, which have historically been effective in tapping domestic liquidity and broadening investor participation. However, market volatility — driven by global uncertainties and shifting interest rate expectations — could affect pricing and demand,” Mr. Ravelas said.

A trader said in a text message that yields for the coming auctions of government securities are not expected to drop drastically as the increase in the government’s borrowing program is expected.

The trader added the government will have to issue a large volume, possibly through retail bonds, to meet the higher borrowing target.

“There is still space for large retail bond offerings, especially with strong demand from local investors seeking safe returns in a moderating interest rate environment,” Philippine Institute for Development Studies Senior Research Fellow John Paolo R. Rivera likewise said in a Viber message.

Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message that there was still space for large retail issuances amid “ample” liquidity, but market volatility could push yields higher.

Mr. Rivera also said market volatility stemming from global rate uncertainty, geopolitical tensions, and inflation risks could affect pricing and dampen investor appetite.

“The BTr (Bureau of the Treasury)will need to be strategic with timing, tenor, and incentives to manage costs and ensure successful take-up,” he said.

Mr. Rivera added the BTr could still tap into the foreign bond market as a “mix of strategies” could be used to meet the borrowing requirement.

BTr’s Ms. Almanza previously said the government is unlikely to issue another global bond this year as its foreign borrowing program is almost completed.

In January, the government raised USD 3.29 billion from its sale of US dollar and euro bonds.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message that “large” maturing Treasury bonds from August 2025-September 2025 will also drive the government to increase borrowings.

The government is looking to raise PHP 690 billion from the domestic market in the third quarter or PHP 325 billion via Treasury bills and PHP 365 billion through Treasury bonds. — Aaron Michael C. Sy

This article originally appeared on bworldonline.com

Read More Articles About:
Worldwide News Philippine News Rates & Bonds Equities Economy Investment Tips Fine Living

You are leaving Metrobank Wealth Insights

Please be aware that the external site policies may differ from our website Terms And Conditions and Privacy Policy. The next site will be opened in a new browser window or tab.

Cancel Proceed
Get in Touch

For inquiries, please call our Metrobank Contact Center at (02) 88-700-700 (domestic toll-free 1-800-1888-5775) or send an e-mail to customercare@metrobank.com.ph

Metrobank is regulated by the Bangko Sentral ng Pilipinas
Website: https://www.bsp.gov.ph

Quick Links
The Gist Webinars Wealth Manager Explainers
Markets
Currencies Rates & Bonds Equities Economy
Wealth
Investment Tips Fine Living Retirement
Portfolio Picks
Bonds Stocks
Others
Contact Us Privacy Statement Terms of Use
© 2025 Metrobank. All rights reserved.

Read this content. Log in or sign up.

​If you are an investor with us, log in first to your Metrobank Wealth Manager account. ​

If you are not yet a client, we can help you by clicking the SIGN UP button. ​

Login Sign Up