Cash-rich BTr borrowing less in Q4

The number of times the National Government (NG) taps the debt market via Treasury bond (T-bond) and Treasury bill (T-bill) sales will remain unchanged in the fourth quarter although the volume of its borrowings should prove lower, the Bureau of the Treasury (BTr) said on Friday.

The alternating auction or sale of T-bonds and T-bills each week will also be kept although NG has ramped up the pace of disbursement necessary to keep the momentum going under President Duterte’s Build, Build Build program.

“(We) have sufficient buffers to accommodate strong spending for (the) rest of the year,” De Leon said in a text message.

Earlier, the Treasury chief said the buffers may be traced to the sustained improvement in government collection.

Total NG borrowings projected for the October-to-December quarter period was pegged at P220 billion, slightly lower than the P230 billion quarter-ago. Year-on-year, the announced borrowing program pales in comparison to the massive P360 billion in the same period year-ago.

Schedule of borrowings for the issuance of T-bills has been retained at a bi-monthly basis, bringing the total debt program for the security at P100 billion, higher than the listed P90 billion in the last quarter.

Borrowing schedule and program for T-bonds was likewise kept on a bi-monthly basis at P20 billion per issue, allowing the total debt program for the debt paper to reach P120 billion, a decline from the previous P140 billion quarter-ago.

Previously, the BTr sold P240 billion worth of T-bills and T-bonds in the third quarter.