PH to borrow P90-B from local debt market in Q4

Posted at 09/27/12 5:16 PM

MANILA - The Philippines said on Thursday it will raise P90 billion ($2.14 billion) in the local debt market in the fourth quarter, lower than actual borrowing in the previous three months, with the government on track to beat its budget deficit goal this year. 

The Bureau of Treasury would sell P45 billion of Treasury bills and an equal amount of T-bonds in the October to December period, it said in a statement. Total debt offers are 15 percent lower than its actual Q3 debt sales.

For the third quarter, the Treasury had set a borrowing plan of P108 billion, but actual debt issues were P106.25 billion, based on Reuters' calculations of Treasury auctions. 

The Treasury kept the size of its twice monthly T-bill auctions at P7.5 billion and the T-bond auction at P9 billion. 

It also maintained the allocation for the 91-day, 182-day and 364-day papers at P1 billion, P2.5 billion and P4 billion, respectively. 

Planned local debt sales in the fourth quarter could be reduced further, treasury officials said previously, with Manila looking to issue a minimum P60 billion worth of 25-year retail T-bonds from Oct. 9 to 22. 

Data on Wednesday showed government revenues in August were greater than its spending in the month, allowing it to post its third monthly budget surplus this year and bringing the eight-month shortfall to just a quarter of the full-year budget deficit target.