Gross borrowings rise by 8% in September

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 PHP 139.45 billion in September from PHP 128.91 billion in the same month a year earlier.

Domestic borrowings, which accounted for 84.33% of the September total, declined by 2.44% to PHP 117.6 billion from PHP 120.55 billion a year ago.

These consisted of PHP 86.29 billion in fixed-rate Treasury bonds and PHP 31.31 billion in net Treasury bill issuances.

On the other hand, gross external borrowings surged by 161.15% to PHP 21.85 billion in September from PHP 8.37 billion last year.

External financing during the month consisted of PHP 12.54 billion in new project loans and PHP 9.31 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 PHP 2.394 trillion from PHP 2.395 trillion in the same period a year earlier.

The end-September figure represented 87.55% of the PHP 2.73-trillion gross borrowing program for 2026.

Domestic borrowings, which accounted for 74.93% of the nine-month total, declined by 8.52% to PHP 1.79 trillion from PHP 1.96 trillion a year ago.

These consisted of PHP 1.37 trillion in fixed-rate Treasury bonds and PHP 424.98 billion in net Treasury bills.

External borrowings in the first nine months jumped by 38.07% to PHP 600.04 billion from PHP 434.6 billion a year ago. These consisted of PHP 314.37 billion in global bonds, PHP 166.92 billion in program loans, and PHP 118.75 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 PHP 2.73-trillion annual program, the government has roughly PHP 340.4 billion in remaining borrowing room for the fourth quarter, consisting of about PHP 120.2 billion in domestic borrowings and PHP 220.1 billion in external borrowings, based on the full-year 70:30 domestic-to-external financing mix. — Justine Irish D. Tabile