Govt tweaks anew borrowing plan for 2010

THE new government has revised downward its programmed borrowings for this year with more than four months to go to P718.82 billion from the previous P766.4 billion that was set shortly after President Benigno Aquino III took office.

The latest revision since July reflects a reduction of P47.58 billion in total gross borrowings, data from the Department of Finance (DOF) showed.

Of the latest borrowing plan, P242.693 billion will be sourced from foreign creditors while the bulk or P476.127 billion will come from domestic sources.

Previously, foreign borrowings were pegged at P254.8 billion or a slash of 12.07 billion while domestic borrowings were pruned by P35.473 billion from previous P511.6 billion.

The new borrowing plan was pegged under a foreign exchange rate of P47 to the greenback.

The P47.58 billion reduction, however, did not take into account the additional borrowings that government would incur in the next coming months such as the on-going retail treasury bond (RTBs), the first ever peso global bonds worth at least $500 million and the planned dollar bond swap estimated at $6 billion.

The government is leaning toward upsizing its RTB float to more than P100 billion while it may issue an enlarged peso global bond worth $1 billion or equivalent to P47 billion.

Of the planned dollar bond exchange, some $500 million could be fresh borrowings or roughly worth P23.5 billion.

At least some P70.5 billion fresh borrowings may be added into the programmed borrowings for 2010.

Taking all these into account, the government would still end racking up a higher borrowing of P789.32 billion by year-end.

The government originally planned to borrow P640.279 billion in 2010, a supposed decline of P12.7 billion from last year’s borrowing plan of P652.981 billion.

Of the original 2010 programmed borrowings, P163.088 billion will be foreign while P477.191 billion will be borrowed from domestic sources.

In the first six months, government borrowings fell by 2.3 percent to P237.18 billion, down by P5.58 billion from P242.76 billion in the same period last year. Dino Ng

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