The government is targeting to raise 170 billion pesos from the local debt market this month, according to Bureau of the Treasury.
In an advisory addressed to government securities eligible dealers, National Treasurer Rosalia de Leon said the bureau may float 170 billion pesos in debt papers this month, lower than the 205 billion pesos issuance program for July
The latest figure, however, is 80 billion pesos higher than the 90-billion-peso domestic borrowing program a year ago. Of the total securities, 110 billion will pesos come in the form of Treasury bills, while the remaining 60 billion pesos will be in bonds.
The government is ramping up its borrowings from both domestic and external lenders to plug the deficit in its budget, which is now expected to widen to 1.6 trillion pesos or 8.4 percent of the gross domestic product due to COVID-19.
As of end-June, the government’s outstanding debt already reached a record 9.05 trillion pesos.