Gov’t spent P622B as of Oct. to bring down debt


The Bureau of Treasury reported that the Philippines’ total debt payment in the first four months of 2012 was down 14 percent at P299.81 billion compared with the P350.29 billion paid in the same period last year.

MANILA, Philippines—The government spent P622 billion in the first 10 months of the year to pay debts, as part of the administration’s commitment to improve the country’s credit profile and secure an investment rating for the Philippines.

Data from the Bureau of the Treasury said the debt payment as of October was P2 billion more than the P619.86 billion spent in the same period last year.

Of the debt payment as of October, P355.36 billion was used to pay principal obligations while interest payments accounted for the rest.

Finance officials said the regular payment of obligations and other debt-management strategies, combined with efforts to shore up tax collection, have allowed the government to significantly trim its debt burden to a comfortable level.

The government’s outstanding debt of P5.2 trillion as of the end of September is equivalent to about 50 percent of the country’s gross domestic product.

The debt-to-GDP ratio, a closely watched indicator of creditworthiness, has been brought down over the years from a peak of 74 percent in 2004, when the Philippines was said to be on a brink of a fiscal crisis.

According to international standards, a debt-to-GDP ratio of a maximum of 50 percent is “manageable.”

Finance officials expect the ratio to fall below 50 percent next year, citing rising revenue collection and debt-management strategies.

Following several positive ratings actions for the country over the past two years, the Philippines is now rated just a notch below investment grade by all three major international ratings agencies, namely Fitch Ratings, Moody’s Investors Service and Standard & Poor’s.

Citing robust economic growth and the declining debt burden, officials said the Philippines was poised to get an investment rating by 2013.

In the third quarter, the Philippines economy grew by 7.1 percent year on year, the fastest in Southeast Asia during the period.

An investment grade is expected to help attract substantially higher amounts of foreign direct investments (FDIs) and thus help the Philippines catch up with its neighbors as far as cornering job-generating FDIs is concerned.

Currently, the Philippines lags behind most of its Southeast Asian neighbors when it comes to FDIs.

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  • joboni96

    bayaran na lahat ng foreign loans ng gobyerno
    ng hindi 1/4 ng national budget pinambabayad

    at magamit na para sa mga projects
    malaki pa maiiwang forex reserves

    tututulan ito ng mga dayuhan para
    pagkwartahan pa tayo sa interes ng utang

    walang b_yag ang bsp para gawin ito
    kasi nakikinabang

  • zeroko

    “The government’s outstanding debt of P5.2 trillion as of the end of September is equivalent to about 50 percent of the country’s gross domestic product.”
    He  he he he! How did we come about with so much debt? Akala ko ba, our economy is manageable? Yon pala, it is going wild! 50% debt repayment yearly is too close for comfort. :You can ask any economist. Tama ang sumusonod na remaks and I quote, ” the Philippines is now rated just a notch below investment grade by all three major international ratings agencies, namely Fitch Ratings, Moody’s Investors Service and Standard & Poor’s.”

    Sick man of Asia parin tayo. HIndi natin pwedeng ipagmalaki ang 24% ng GDP natin ay galing sa ‘public works.” Any government projects should not be use as gage for GDP. What is practical is to use the Private Sector Investment like Foreign Direct Investment as gage in the well being of our economy.

    Ang Vietnam, even without advertizing iteself can easily get $ 40 billion FOI in a month! Yet, our “Banana Republic” is already noisy when it gets a $1 billion dollars A YEAR FOI. Heh hehe! Celebrating over nothing!

    As long as Filipino-Chinese rules our government, the Philippines will always be emaciated. We are being bleed alive. We labor to pay our taxes, and the Chinese work hard to steal it? Where on earth do you see a Senator or a Congressman whose salary in 2011 and prior years is only P38 thousand pesos would have a 38 million pesos to maintain his office and his function? He he he. That is on top of the pork barrels. These people are living “like kingts” midst extreme poverty!

    Only in the Philippines!

    • blainz

      50% is the debt to GDP ratio. That’s manageable.

      For comparison, Canada is at 80%, not so good. Zimbabwe is at 230%, that means their economy has imploded.

      Debt servicing in the current PH budget is 18.3%. For 2013 it’s 16.6%. With a higher credit rating (we’ve had several upgrades) that will decrease further, which is one of the reasons credit rating is important.

      The vast majority of this country’s debt was incurred by previous administrations.

  • rodben

    In other country specially SOCIALIZE their gov’t are helping too much to their people the exchange of taxes they collected to them, in Pinas the peoples are sacrificing  themselves in other country to support their family and help the gov’t too, GOOD LIFE of the Philippines gov’t only receiving and borrowing money…

  • help_our_country

    What simple things we can share to the government in minimizing our foreign debts,can you cite one?
    Well,i can cite one…do not litter on the streets especially plastic which clog the drainage.When the drainage is free from clogging then the maintenance and flooding is lessen thus money is saves.

    • zeroko

      II feel sorry for you. Hindi mo nakikita to what extend corruption is going on. What you are suggesting about keeping the drainage clean is not even a drop in the bucket. We have a gigantic problem of corruption in which our Chinese Government is the perpetrator. Yuong much vaunted na slogan ni PNOy, kung walang kurrupt, walang mahirap. He he he. Lalong dumami ang corrupt. Lalong dumami ang unemployed, 29%! Hindi pa dumarating ang 2013, may descretinary funds na si PNoy na P312 billion pesos! 

      Walang ginawa si PNoy kundi magbenta ng heritage ng Pilipino katulad ng Food Terminal Incorporataed sa Taguig, 106 hectares. Pinagbili rin niya ang Puro Point sa La Union. Pinagbili rin niya ang eba pang ari-arian ng mga Pilipino. 

      He said, we (the people) will spend 5 billion pesos for the rehabilitation of Angat Dam. He he he. Wala pang study, may budget na sa rehabilitation. Ang  tutuo, hawak na ng Korean firm ang Angat Dam. Sila ang nanalo sa bidding. O, bakit ka gagastos sa rehabilitation, hindi na pala gobyerno ang may ari.

      Tapos, hindi pa siya matagal na nakaupo bilang Presidente, gusto na niyang ipag bili ang PAGCOR na kumikita ng 34 billi0on pesos a month! Pati, Camp Crame at Camp Aguinmaldo, gusto rin niyang ipagbili. Ang purchase ng PNP guns, nakialam si Puno ng DILG samantalang wala naman siyang pakialam doon dahil observer lang ang papel niya. Pumunta pa sa Israel, supplier ng baril. 

      Kaya, dapat, bantayan mo ang mga Filipino-Chinese sa gobyerno natin. They are up for no good. They are there to plunder our resources and enslave us. Sino ba ang magbabayad sa Sovereign guarantee ng gobyerno? D, tayo!

  • help_our_country

    ” Currently, the Philippines lags behind most of its Southeast Asian neighbors when it comes to FDIs.”as the writer said.What the government should do is to continue spending for robust economic growth thus increasing our investment grade.When investment grade is attained then FDIs will come….then more jobs will be available to our laborforce.Another one,continue bring the remittances to our shore thus consumer spending will surely help the economy.

    • zeroko

      Hindi papasa ang FOI, otherwise if it succeed, it is water-down version. Ligtas parin ang Chinese Dominated Government natin sa scrutiny. Believe me.

  • Ben

    why don`t you sell the debts to the Filipino people.. who owns the Filipino debts?

    • help_our_country

      The debts was acquired mostly and ballooned during the past government.Why should i pay in the first place when i knew that the money gone to corruption.

      • Ben

        you didn`t get what i meant…I mean T-bills treasury bills, debt paper has to be sold to the Filipino people to keep the risks owned by the Filipinos and not other governments. This is a good investments for the pinoys and instead of getting caught in the investment scams…here it is a very good investment, backed up by the governments faith.

  • joel genese

    Maalala ko sa mga nagdaang administrasyon, pag malaki ang binabayad ng gobyerno para sa utang ng Pilipinas, kabi kabila ang protesta ng mga aktibista. Sabi nila, tuta daw ng WB at IMF ang Pilipinas. Hintayin at malamang mag po post dito ang mga aktibista at i criticize ang gobyerno.

  • Maldi2

    Unless the FOI Bill is passed plus the improvement on business permits or easing our perennial red tape systems in the goverment, Philippines never attract big investments. Has the 7.1% growth translated into more jobs?  NO!  Unemployment is increasing.  What is investment grade if no investments, no hot money are coming?  The growth was attributed merely on carryover domestic speding not carried out last year + the increasing OFW remittrances.  Puro mga panandaliang maskara – hidi po sustainable ang mga yan!

    • big dawg

      i think i’ll appreciate suggestions more than complaints. all i see in your comments are bitterness. yes, we need jobs, and i think we’re doing just right heading that direction. i don’t think you’re stupid, in fact i think you’re smart, bitter nga lng. sa tingin ko we’ve done our best for the current situation, the change you’re looking for doesn’t happen overnight. use your smarts and contribute, don’t be bitter and complain

      • BawalAngReklamador

        mas MADALI kasing magreklamo kabayan kesa MAGTRABAHO’T GUMAWA NG PARAAN para MAKATULONG sa bayan…

        Ang UNA sa palagay ko ang PINILING gawin ni kabayang Maldi2 para MAGMUKHANG magaling sa mga nagkukumento dito..

  • Michelle Martin

    GREAT NEWS!!! 

    • Maldi2

       what great news is there when we are lagging behind on FDI?  All those economic figures are but cosmetics!

      • Butuan

        Be thankful of what our government efforts are doing than nothing.  Let me ask you, what did you do to help bring down our debt, CRITICIZING?  Crab mentality Filipino!   

      • latino_boom

        Very well said mate

      • latino_boom

        TALANGKA!!! For you there is nobody better than what you can think…why don’t you run for Public Office let’s see where it will take you

      • BawalAngReklamador

        Sa DAMING magagandang bagay na nabanggit sa itaas.. Yung NAG-IISANG negatibo pa ang NAPUNA mo kabayan..  Tsk.Tsk.Tsk.

      • Diablo_III

        Bawal ang CRABS dito…

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