Gov’t paid P580B in debts in 1st 9 months

Principal accounts for P334.5B

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MANILA, Philippines—The government spent P579.8 billion in the nine months to September to pay portion of its debts, according to the Bureau of Treasury.

The amount was 3 percent less than the P597.5 billion paid in the same period last year.

From January to September, the government settled P334.5 billion in principal, including P287.9 billion in domestic debt and P46.6 billion in foreign loans.

The total principal payment in those nine months was 11 percent lower than the P375.1 billion paid a year ago.

The government also paid P245.2 billion in interest, covering P153.1 billion charged on domestic debt and P92.2 billion on foreign borrowings.

Total interest payment for the period was 10 percent higher than the P222.4 billion recorded in the same period last year.

Budget Secretary Florencio B. Abad said in early October that spending on interest payments went up because the BTr issued a bigger amount of fixed rate treasury bills and retail bonds.

Even then, Abad said, the January to September interest payments were P14 billion or 5.4 percent less than the programmed level.

BTr data showed that the biggest contributors to new debt this year were still the issuance retail treasury bonds, which amounted to P179.8 billion; global bonds, P66 billion and regular domestic bonds, P364 billion.

The government floated some P53 billion in five-year treasury bonds, P143.4 billion in seven-year, P95.3 billion in 10-year, P57.9 billion in 20-year and P14.4 billion in 25-year bonds.

In September alone, the government paid P68.7 billion in financial obligations, including P52.4 billion in domestic debt and P16.4 billion in foreign loans.

The month’s total was 5 percent lower than the P72.4 billion paid a year ago.

As for principal payments, the Treasury shelled out P44.6 billion in September, lower by 4 percent than the previous P46.6 billion.

Interest payments for the month reached P24.1 billion or 7 percent less than the P25.8 billion settled in the same month last year.

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  • im_earth

    good. sana makahiram ako para pambayad ng utang din heheh

  • http://twitter.com/PINOYPOWER100 JUAN DELA CRUZ

    Very well done PNoy!

    9 years ni arroyo pataas ng pataas ang interest rates ng utang ng pilipinas dahil 6 times na downgrade ang credit rating ng pilipinas. Kay PNoy 2 years pa lang, 7 times na-UPGRADE ang credit rating at bumaba ang binabayarang interest rates.

    • SignTheWaiverNow

      kaya pala mas malaki ang binayaran nating interest ngayong taon kumpara sa nakaraang taon noh?

      very well done PENOY!

      tsk tsk tsk……

      • blainz

        Interest on treasury bonds is fixed, the government has to pay the fixed amount. So, if a previous administration assumed the debt at a certain interest, there’s nothing the left for succeeding administrations to do but pay, unless you’re arguing that the country defaults, which is a fantastic way to ruin a developing economy.

        The credit ratings upgrade implies any new debts will have lower interest, we are effectively exchanging high interest debt with low interest debt. This benefits the entire country, however indirectly, crabs included.

      • SignTheWaiverNow

        if you read carefully, you can find your answer…. let me post it to your yellow minded little mind…..
        “Budget Secretary Florencio B. Abad said in early October that spending on interest payments went up because the BTr issued a bigger amount of fixed rate treasury bills and retail bonds.”
        and following your logic that treasury bonds is fixed, can you then explain to me why the interest went up if you didn’t issue new bonds??? what a fantastic way of defending your beloved yellow PENOY!

        i hope your small yellow brain is enlightened….

        tsk tsk tsk……

      • straightalks

        It was not the rate that went up, it was the payment due to a bigger volume of borrowings. Naturally, you need to borrow bigger if the rates are low to pay higher interest rate debts incurred by the previous admin. Interest payment and interest rates are not the same. The former almost always depends on the volume of debt.

      • SignTheWaiverNow

        exactly my point… which only means that there were new bonds/loans/volume that was borrowed in excess of whatever matured…

        this is the exact point i am driving at with my question “why did we pay more interest?”…

        now that I can see a person with good reasoning, I believe I can now relate the borrowings and higher interest payments to spendings…

        If one is underspending but overborrowing, then where does that lead us? see…. this is a very negative, if not dangerous, monetary and fiscal policy that the current administration is doing….

        which will lead us to conclude that the student council president does not know anything but just all talk…. the worst part is yellow zombies are believing him to point of telling us that this is a good thing for the country….

        tsk tsk tsk….

  • SignTheWaiverNow

    The total principal payment in those nine months was 11 percent lower than the P375.1 billion paid a year ago.

    The government also paid P245.2 billion in interest, covering P153.1 billion charged on domestic debt and P92.2 billion on foreign borrowings.

    Total interest payment for the period was 10 percent higher than the P222.4 billion recorded in the same period last year.

    For all those yellow zombies here who are pretending this is one bit of a good news…. let me break it down for you….

    Dahil sa katan gahan ng ating student council president, nagbayad tayo ng mas malaking interest kumpara sa nakaraang taon…. at mas maliit na principal payment…

    ibig sabihin nito, mas babagal ang ating pagbabayad ng utang sapagkat malaking bahagi ng ating naibabayad ay napupunta lamang sa interest… hayyyy…….

    at ito pa ang bonus, plano pang mag pautang ng ating gobyerno sa Europa ng mas mababang interest…

    Sana magising na itong student council president nating ABNOY!

    • puza65


      • legislex


      • SignTheWaiverNow

        basahin mo mabuti ang sinulat mo budoy…..


        mukhang conflicting noh??? mga naloloko nga naman talaga ni budoy…..

        Pangalawa, wala akong pakialam kung sinong umutang nyang utang na yan… klarong klaro naman sa article, nagbayad tayo ng mas malaking interest kumpara sa nakaraang taon, budoy…. last year ba sino ang presidente? ngayong taon sino ang presidente? hindi ba si ABNOY?

        Pangatlo, mas konting utang ang nabayaran ng Pilipinas kumpara ulit sa nakalipas na taon… kaya huwag ka na magmagaling kasi kitang kita naman sa data na ABNOY ang mahal mong Presidente….

        At take note, ang interest na binayaran natin ay mas malaking ng mahigit P20B! Again, 20 BILLION PESOS! Ang daming classroom na sana yan… at dahil sa katan gahan ng student council president natin, tayo ngayon ang naghihirap….


    • straightalks

      Let’s be civil and not resort to name calling. Otherwise, I’ll think that you’re the abnoy. :p Anyway, the loan to Europe will be from the BSP’s reserve. The funds of the BSP could not be touched by government anyway for social services. It is not part of the national budget and could be disbursed only in the pursuit of the BSP’s functions that is monetary policy. So the plan of the BSP to loan to other countries is a welcome development since it would generate interest payments part of which would accrue to the national treasury. Instead of letting the GIR just sit, might as well loan some to get income. You cannot, however, loan the whole 80b USD since BSP needs a healthy GIR level to ensure smooth transactions with international markets and to pursue monetary operations in the performance of its mandate.

      • SignTheWaiverNow

        it does not matter what current process or policies that we have….

        logic will dictate that with $82B sitting in reserves and $1B will be loan to Europe with lower interest than the prevailing market rate…. might as well use the excess reserves to pay our debt than loan it to another country….

        It does not make any sense… logically, and financially…. except for bragging rights!

        see? one need not be an expert in economics or financial management in order to arrive in that conclusion… forget about the process/policies/standard practice or whatsoever legal or procedural obstacles, just focus on what is logical and what is not!

        tsk tsk tsk……

  • http://www.facebook.com/profile.php?id=100003516764413 Jean Claude

    Actually, the Philippines has 81 billion dollars in reserves (among the largest in Asia)… Philippine debt? It’s 60 billion only. In fact, the government can pay our whole debt now! and we still have 21 billion dollars left! 

    • divictes

      He he he … The crabs must must be molting with envy…. 

    • KpTUL

       Among the largest in Asia (compared to Laos, bangladesh and the likes) ? Did you check your facts ? Do not make grossly uninformed imputation that after paying all your debts, together with a surplus of 21 B is a good news. What do you want to say ? Your country is rich ? Economics doesnt work like that sir. This is not just a simple addition and subtraction, and voila ! 

      • http://twitter.com/PINOYPOWER100 JUAN DELA CRUZ

        Napakatanga mo katul!

        Hindi umabot sa $81Billion ang reserves ng pilipinas sa 9 years ni arroyo.

  • rickysgreyes

    The government should live within its means. Stop borrowing.

    • straightalks

      It’s ok to borrow to invest. It’s like business, you borrow invest in the economy (infra, social service) that would hopefully return bigger yields that would allow the government to pay back the debts. What’s wrong is if the government borrows to guarantee or give loans to crony capitalists. That’s disastrous. It’s money going down the corrupt drain.

  • NoWorryBHappy

     Gov’t paid P580B in debts in 1st 9 months
    So, what do all these numbers mean ?
    Is it good news or bad news ?
    How soon are we gonna be debt-free ?

    • http://www.facebook.com/profile.php?id=100003516764413 Jean Claude

      its good news because the government has money to pay. in europe, their governments dont have cash to pay for their debt thats why they have a “debt crisis”..

      • SignTheWaiverNow

        its good news because your level of thinking is so bad!

        tsk tsk tsk…….

    • KpTUL

      Very valid question. As what Jean Claude said, it is a good news. However, you need to be aware that comparing the Philippines with the European countries is comparing apples with oranges. It is not as simple as that ! That is the very reason why it takes years for credit rating agencies in upgrading the PH to investment grade. They downgrade those countries very fast starting from super AA rating, but it seems like eternity for us to reach “even” the mere investment grade. There economy is so huge while ours is not.

      • straightalks

        Our economy has the potential to grow faster. If only those protectionist provisions in the constitution were a bit looser to encourage FDIs. Ours is one of the lowest in Southeast Asia. And btw, Europe’s case is unique because while individual countries’ bonds were downgraded, the EU guaranteed debts is still AAA. These funds could be accessed by the PIGS if they so request.

    • dodong1

      it means no matter how fast the country pay its debts, it is still a third world country due to corruption and other bad practices…

    • straightalks

      It’s neutral. Governments always have debts. Even the US has debt levels higher than its GDP, same with Japan. What’s important is that the funds were disbursed properly for the benefit of the people.

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