Author Topic: Philippine National debt  (Read 5571 times)


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Philippine National debt
« on: January 19, 2010, 06:25:29 PM »
RP debt rises to P4.424 trillion
By Iris C. Gonzales (The Philippine Star) Updated January 20, 2010 12:00 AM

MANILA, Philippines - The National Government’s debt stock climbed to P4.424 trillion as of end-October 2009 following the issuance of $1 billion in global bonds during the month and the depreciation of the peso during the period, latest data from the Bureau of the Treasury (BTr) showed.

Total outstanding debt increased by two percent or P86 billion from the end-September level of P4.338 trillion, of which the government owed P1.975 trillion or 45 percent to foreign creditors and P2.449 trillion or 55 percent to domestic creditors.

Theoretically, at P4.424 trillion, each of the 92.23 million Filipinos is indebted by roughly P47, 968.

The BTr said domestic debt increased by P25 billion or one percent from the end-September 2009 level as the National Government issued more Treasury bills and bonds than it had redeemed during the period.

The National Government’s foreign debt, increased by P61 billion or 3.2 percent over the end-September level as the country issued more than it borrowed during the period.

In October last year, the government sold $1 billion in global bonds, its third bond sale in 2009. In January last year, the government also sold $1.5 billion in dollar-denominated bonds and in July, it raised $750 million also from the sale of bonds. The government’s total foreign commercial borrowings last year amounted to $3.2 billion.

The contingent debt of the National Government, meanwhile, declined to P565 billion or P14 billion lower from the end-September 2009 level of P579 billion because of repayments.

Contingent debt is composed of guarantees issued by the National Government.

The government borrows from local and foreign lenders to finance its budgetary requirements.

It has been trying to put the country’s fiscal house in order but external developments, administrative loopholes in revenue collection and rampant corruption in government revenue agencies continue to bloat the deficit.

The government’s budget deficit had ballooned to P272.5 billion as of end- November 2009, way above last year’s programmed ceiling of P250 billion.

Finance officials are bracing for a budget gap of just below P300 billion for 2009 and they expect the deficit to hit P293 billion this year.
« Last Edit: January 19, 2010, 06:29:31 PM by Adroth »
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