Gov’t debt stock eases to P5.33T | Inquirer Business

Gov’t debt stock eases to P5.33T

MANILA, Philippines—The national government’s debt stock settled at P5.33 trillion as of January, falling by P103 billion, or 1.9 percent, from the December 2012 level, mainly due to a persistently strong peso as well as a net redemption of domestic securities.

The amount of outstanding obligations as of the end of January was, on the other hand, 6.8 percent, or P341 billion, higher than the level posted in the same month of 2012.

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


Data on total outstanding debt from the Bureau of Treasury show that 64 percent, or P3.41 trillion, was borrowed from domestic lenders.


Local debt decreased over a month by P57 billion, or 1.7 percent, from the P3.47 trillion posted in December.

The decrease was attributed to the government redeeming more local debt papers compared to the volume that was issued.

Further, 36 percent, or P1.92 trillion, of total outstanding debt was booked in foreign currencies such as the US dollar, as well as the euro and yen.

Aside from loans extended by multilateral lenders and official aid from foreign governments, the Philippines also borrows abroad through the issuance of bonds denominated in these currencies.

Foreign borrowings decreased by P46 billion, or 2.3 percent, from the P1.97 trillion owed to overseas lenders in December.

The decrease in foreign debt was due mainly to the appreciation of the peso against the US dollar, which shaved off P24 billion from the debt stock.


Also, the depreciation of the yen and the euro against the dollar reduced outstanding debt by P19 billion.

However, net repayment in January exceeded new inflows, paring the debt stock by P3 billion.

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In January, government debt paper pegged in dollars amounted to an equivalent of P987 billion while yen and euro loans stood at P45 billion and P28 billion, respectively.

TAGS: Government Debt, Philippines

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