Philippines sets Q4 local borrowings at $1.4 bln

Published: 29 Sep 2009 00:15:33 PST

MANILA, Sept 29 - The Philippines plans to raise 65 billion pesos ($1.4 billion) from local debt issues in the fourth quarter, lower than programmed borrowings in the previous three months, to help plug a record budget deficit this year, the Treasury said on Tuesday.

The Treasury had set a borrowing plan of 110.5 billion pesos in the third quarter, but actual sales from debt auctions amounted to 73.53 billion pesos, based on Reuters' calculations. The amount does not include sales of local debt via a tap window to government agencies and corporations.

The government raised an extra 114.4 billion pesos from the sale of retail Treasury bonds this month, allowing it to reduce sales of Treasury bills and bonds in the fourth quarter.

The government aims to keep the budget shortfall at a record 250 billion pesos, or 3.2 percent of GDP, this year.