Lower Q3 borrowings eyed

De Leon

Given the proposed catch-up on government spending, National Treasurer Rosalia De Leon said the actual spending data in June will determine how much the Bureau of Treasury (BTr) will need to cover the government’s borrowing requirement.

“We will have to wait for the June spending data to assess how much is still needed. We will have to calibrate. But in terms of the volume, most likely the volume would be lower than the second quarter since spending was a bit weaker in the first two quarters. At the same time, we’ve been able to maintain our borrowings,” De Leon told reporters on Monday.

“Also, the collection is pretty good so we have more than enough cash to finance sustained higher spending for the next quarter or so,” she added.

According to De Leon, the borrowing plan will be finalized during the scheduled cash programming meeting within the week.

She said the Treasury has enough cash reserves for the entire year.

“There’s a commitment from the agencies that they would really be pushing hard in terms of spending. We will have to see how spending goes for the month of June and then from there, we’ll have to see whether we would (implement) a little bit of softening in terms of the third quarter (borrowing),” De Leon said.

“What I’m saying is that we have to first see the spending pattern this June (and unless) there’s really been more aggressive disbursements, definitely a smaller volume than the second quarter,” she added.

Earlier, the BTr prepared P315 billion worth of local borrowings for the second quarter.