The Bureau of the Treasury said the debt-to-GDP (gross domestic product) ratio likely fell to 41.59 percent in 2019, better than its target of 41.72 percent, as it managed to raise P995 billion last year through a proactive borrowing strategy that reduced the government’s exposure to foreign exchange risks.
The agency said in a report to Finance Secretary Carlos Dominguez III that part of the proactive borrowing strategy were the issuances of about P185.7 billion in global bonds and P693.8 billion-worth of government securities.
External borrowings in 2019 also included P37.06 billion in project loans and P78.2 billion in program loans.
Domestic sources accounted for 70 percent of the government’s borrowings last year, achieving the BTr’s desired 70-30 financing mix that aims to reduce the country’s exposure to external risks while developing the local debt markets.
“This proactive borrowing strategy took advantage of positive market developments to secure tight pricing for our global bond issuances,” National Treasurer Rosalia de Leon said in her report to Dominguez.