Govt sets lower borrowing plan

FRESH from its successful forays in the global and local capital markets, the government has set a lower borrowing program of P75 billion in the fourth quarter, down 30.2 percent from the P107.5 billion borrowings in the about-to- close third quarter, according to the Bureau of the Treasury (BTr).

The borrowing program from October to December 2010, however, is still higher by P10 billion compared to the P65-billion borrowing plan in the same period last year.

The BTr will offer smaller sizes of benchmark 91-day and 182-day Treasury Bills (T-bills) at P1 billion from P1.5 billion and P2.5 billion from P3 billion, respectively

The 364-day debt papers will be sold at the same third quarter size of P3.5 billion.

The BTr aims to raise P7 billion in fresh borrowings per weekly auction of T-bills.

T-bills would be sold twice every month except in December, wherein only one auction would be held for a total of P35 billion for the entire fourth quarter.

The government will be floating P40 billion of treasury-bonds (T-bonds) in the fourth quarter, lower than the P51 billion it unloaded during the current quarter.

The weekly size of T-bonds has also been slashed to P8 billion per float from the previous quarters’ size of P8.5 billion. Dino Ng

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