NG gross borrowings sharply decline in April

By Justine Irish D. Tabile,Senior Reporter

THE NATIONAL GOVERNMENT’S (NG) gross borrowings declined by over 66% in April amid significantly lower domestic debt, the Bureau of the Treasury said.

In its latest cash operations report, the Treasury said that gross borrowings fell by 66.62% to P130.19 billion in April from P390.06 billion a year ago.

The bulk or 93.92% of April’s gross borrowings came from domestic sources.

Gross domestic debt totaled P122.28 billion in April, down by 68.22% from P384.71 billion a year earlier.

This included the issuance of P125.02 billion in fixed-rate Treasury bonds and a net redemption of P2.74 billion in Treasury bills.

On the other hand, external debt only accounted for 6.08% of the total gross borrowings for the month.

In April, gross external borrowings stood at P7.91 billion, 47.83% higher than P5.35 billion in the same month in 2025.

External borrowings during the month consisted of P7.76 billion in new project loans and P151 million in program loans. There were no global bonds issued during the month.

“The decline in April borrowings… likely reflects timing and still-challenging global market conditions rather than a clear policy shift,” Union Bank of the Philippines Chief Economist Ruben Carlo O. Asuncion said in a Viber message.

“The government appears to be staying opportunistic offshore while leaning more on domestic funding to manage costs and foreign exchange risks,” he added.

The peso closed at P61.485 against the greenback on April 30, weakening by 73.7 centavos from its March 30 finish of P60.748.

4-MONTH BORROWINGS
In the four months to April, NG gross borrowings were almost flat at P1.134 trillion from P1.135 trillion in the same period a year earlier.

This represented 42.28% of the P2.68-trillion gross borrowing program for the year under the Budget of Expenditures and Sources of Financing 2026.

Domestic debt, which accounted for 75.26% of the total, rose by 2.14% to P853.37 billion at end-April from P835.51 billion a year prior.

This consisted of P769.77 billion in fixed-rate Treasury bonds and P83.59 billion in Treasury bills.

External borrowings in the first four months slid by 6.41% to P280.47 billion from P299.69 billion year on year. This was composed of P161.29 billion in global bonds, P79.93 billion in program loans, and P39.26 billion in new project loans.

Mr. Asuncion said that he expects borrowing activity to pick up in the coming months as spending accelerates. However, he noted the pace of borrowings “will remain sensitive to global rates and risk sentiment.”

Meanwhile, Mr. Asuncion said that a stronger peso could support an increase in external borrowings in the coming months.

“A stronger peso would generally help at the margin, but it is not the primary driver. A firmer currency reduces foreign exchange risk and expected debt servicing costs, which can make external borrowing more attractive,” he said.

“It can also signal improved macro stability, which tends to support offshore investor appetite,” he added.

On Friday, the peso inched up by half a centavo to close at P61.59 against the greenback, from its P61.595 close on Thursday. Month on month, the local currency weakened by 10.5 centavos from its P61.485 finish on April 30.

However, Mr. Asuncion said that external borrowings will depend on global interest rates, market volatility, and timing of issuance windows.

“So, even with a stronger peso, external borrowing will likely remain opportunistic rather than automatic, depending on how favorable global funding conditions are,” he added.