Quantcast
Latest Stories

Gov’t debt payment in Jan.-Feb. down 11%

By

The government spent P174.3 billion in the first two months this year to pay its debts.

The amount was 11 percent less than the P195.1 billion settled in the same period last year, according to the Bureau of Treasury (BTr).

Debt servicing was subdued amid continuing efforts of the government to lengthen the maturity of its financial obligations and spread out payment schedule.

From January to February, the government paid a total of P101.6 billion in principal, including P55.2 billion in domestic debt and P46.4 billion in foreign loans.

Total principal payment in those two months was 18 percent lower than the P124.3 billion posted in the same period of 2012.

Also, the government paid a total P72.8 billion in interest charges, covering P45.3 billion in domestic debt and P27.4 billion in foreign borrowings.

Total interest payment for the period was 3 percent higher than the P70.9 billion recorded in the same period of 2012.

As of February, domestic obligations—particularly regular and retail treasury bonds (RTBs)—accounted for the bigger part of interest payments.

The Bureau of the Treasury shelled out P38.5 billion for interest payments on regular T-bonds. This means an increase of 4.4 percent from P36.8 billion a year ago.

Also, interest payments related to RTBs went up by 56 percent to P6.7 billion from P4.3 billion.

In the first two months of this year, T-bonds were the biggest contributors to new debts. Regular issues racked up P66.4 billion.

Budget Secretary Florencio B. Abad said last week that the government was expecting relief on interest payments following Fitch Ratings’ upgrade of the country’s long-term foreign borrowings to investment grade.

“We expect the upgrade to lower our risk profile significantly, which in turn will lead to lower interest payments for the country’s credit requirements,” Abad said.

Latest BTr data show that the government’s debt stock reached P5.33 trillion as of the end of January.

This represents an increase of P103 billion or 1.9 percent from the previous month’s level, largely due to a persistently strong peso as well as a net redemption of domestic securities.

With the latest estimate that the population will grow to 96 million, according to the National Statistical Coordination Board, the amount of the total outstanding debt represents a share of P55,562 for each Filipino.


Follow Us


Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Bureau of Treasury , Business , debt payment , economy , News



Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
Advertisement

News

  • US teacher fired over comment on black president
  • Magnitude-7.5 earthquake shakes Mexican capital
  • Title of new Hillary Clinton book: ‘Hard Choices’
  • Filipinos, Dutch re-enact crucifixion of Christ
  • 14 killed in car bombing in Homs
  • Sports

  • Nadal ousted by Ferrer in Monte Carlo quarters
  • Pacquiao shorts in Bradley fight sold for P1.7M in LA auction
  • Ryu pitches Dodgers past Giants
  • Alonso sets the pace in Chinese GP practice
  • Heat seek Three-peat but Spurs, Pacers top seeds
  • Lifestyle

  • Levine designs womenswear with help from fiancee
  • Gabriel Garcia Marquez, Nobel laureate, dies at 87
  • Ford Mustang turns 50 atop Empire State Building
  • Pro visual artists, lensmen to judge Pagcor’s photo contest
  • ‘Labahita a la bacalao’
  • Entertainment

  • Myx TV premieres Asian American ‘docu-series’
  • A nutty finale for ‘Scandal,’ TV’s craziest show
  • EXO postpones release of mini album ‘Overdose’
  • ‘X-men’ filmmaker slams ‘fabricated’ sex attack claims
  • Singer Chris Brown’s bodyguard on trial in DC
  • Business

  • US commerce secretary spells out economic facet of ‘pivot to Asia’
  • Italy sells luxury state cars on eBay
  • Asian shares mostly up in quiet trade
  • Dollar up in Asia on US jobs data, Ukraine deal
  • Barbie doll has a problem
  • Technology

  • Nasa’s moon-orbiting robot crashes down
  • Netizens pay respects to Gabriel Garcia Marquez
  • Nokia recalls 30,000 chargers for Lumia 2520 tablet
  • Facebook rolls out ‘nearby friends’ feature
  • Netizens seethe over Aquino’s ‘sacrifice’ message
  • Opinion

  • Editorial cartoon, April 17, 2014
  • A humbler Church
  • Deepest darkness
  • ‘Agnihotra’ for Earth’s health
  • It’s the Holy Week, time to think of others
  • Global Nation

  • Las Vegas ‘Pinoy Pride’ fest hails Filipino heritage
  • Marking Jesus’ journey on Good Friday
  • Filipina accomplice arrested for fake bills in Malaysia
  • DoH denies Filipino nurse no longer positive for MERS virus
  • WHO warns vs spread of MERS-Cov, urges vigilance in taking precautions
  • Marketplace