Philippine debts up in August due to lower peso
11/09/2008 | 09:49 PM
MANILA, Philippines - The Philippines’ total debts went up slightly in August after the government tax agency failed to meet its financial targets and the local currency weakened.
The national government’s total obligations stood at P4.024 trillion in August, P58 billion, or 1.5 percent higher, than July’s figures, Finance Secretary Margarito B. Teves told reporters on Sunday.
The hike resulted from the Bureau of Internal Revenue’s (BIR) inability to meet its goals for the period. The BIR, the country’s largest revenue source, missed August targets by as much as P18.8 billion, cutting the government’s capacity to settle maturing debts.
Moreover, the weak peso also hiked the country’s debt stock by 2.3 percent to P55 billion, Teves said. A net repayment of P5 billion in foreign debts partially offset the country’s debt load by P13 billion during the period, he added.
Local debts increased by only P21 billion, or 0.9 percent from July, as Manila undertook minimal borrowing from domestic sources.
However, foreign debts went up by P37.5 billion, or 2.3 percent, to P1.665 trillion, Bureau of Treasury data indicate.
Of the government’s total indebtedness, 41 percent or P1.665 trillion were owed to foreign creditors. The remaining 59 percent or P2.359 trillion were due to domestic lenders.
Contingent liabilities—or debts whose payments are guaranteed by the government in case of default—also went up to P519 billion in August from P512 billion in July. The rise was also the result of the peso decline. - GMANews.TV
The national government’s total obligations stood at P4.024 trillion in August, P58 billion, or 1.5 percent higher, than July’s figures, Finance Secretary Margarito B. Teves told reporters on Sunday.
The hike resulted from the Bureau of Internal Revenue’s (BIR) inability to meet its goals for the period. The BIR, the country’s largest revenue source, missed August targets by as much as P18.8 billion, cutting the government’s capacity to settle maturing debts.
Moreover, the weak peso also hiked the country’s debt stock by 2.3 percent to P55 billion, Teves said. A net repayment of P5 billion in foreign debts partially offset the country’s debt load by P13 billion during the period, he added.
Local debts increased by only P21 billion, or 0.9 percent from July, as Manila undertook minimal borrowing from domestic sources.
However, foreign debts went up by P37.5 billion, or 2.3 percent, to P1.665 trillion, Bureau of Treasury data indicate.
Of the government’s total indebtedness, 41 percent or P1.665 trillion were owed to foreign creditors. The remaining 59 percent or P2.359 trillion were due to domestic lenders.
Contingent liabilities—or debts whose payments are guaranteed by the government in case of default—also went up to P519 billion in August from P512 billion in July. The rise was also the result of the peso decline. - GMANews.TV
