Gov’t settles P350.3B in debt

MANILA, Philippines—The government spent P350.3 billion in the first four months to pay for its debts, 4 percent lower than the P365.1 billion paid a year ago, according to the Bureau of the Treasury (BTr).

The decrease was observed amid Malacañang’s continuing efforts to ease the level of debts in relation to gross domestic product, which at the end of 2010 was at 55.4 percent.

From January to April, the government settled a total of P248.1 billion in principal, including P174.9 billion in domestic debts and P73.3 billion in foreign loans.

The four-month payment was 3.2 percent higher than the P240.6 billion posted in the same period last year.

Also, the government paid P102.2 billion in interest, covering P55.5 billion in domestic debts and P46.7 billion in foreign borrowings.

Total interest payment for the four months was 18 percent lower than the P124.6 billion recorded a year ago.

Latest data from the BTr showed that the outstanding debt stock hit P4.655 trillion as of February, decreasing by about P85.4 billion from the January level mainly due to net repayment.

Of the total outstanding debt, 57 percent, or P2.664 trillion, was borrowed from domestic lenders.

About 43 percent ,or P1.991 trillion, of the total was booked in foreign currencies such as the US dollar, euro and yen.