Total debts rise as RP hikes foreign borrowing
05/14/2009 | 03:33 PM
MANILA, Philippines - Increased foreign borrowing and the Philippine peso’s depreciation boosted the national government’s total obligations by double-digits, the Bureau of Treasury (BTr) said.
As of end-February this year, the Philippines’ total debts reached P4.164 trillion, 10.4 percent higher than the P3.771 trillion posted during the same period last year.
Forty-five percent of the country’s total obligations – amounting to P1.870 trillion – is owed to foreign creditors while the remaining 55 percent, or P2.294 trillion, is owed to domestic creditors, the BTr said in an emailed statement.
The country’s foreign debts rose 23 percent from P1.520 trillion during February last year as the government availed more loans from abroad.
Direct foreign loans rose 24.1 percent to P772.3 billion in February this year from P622.2 billion last year. Loans availed by agencies also climbed to P703.6 billion from P622.2 billion, a 24 percent increase.
Meanwhile, the national government’s domestic debts inched slightly to P2.293 trillion for the second month this year from P2.250 trillion.
The Philippines’ contingent debt – composed mainly of guarantees issued by the national government – also increased by double-digits to P554 billion from P495.3 billion.
Government-guaranteed foreign obligations – assumed by the national government if an agency fails to pay its debts – rose to P461.2 billion in February from P422.4 billion last year.
“The increase in domestic contingent obligations of P20 billion [from the previous month] was due to the adjustment resulting from late receipt of information on the actual availment of the short-term loan facility by the Power Sector Assets and Liabilities Management Corp. (Psalm)," the BTR said in a statement.
Psalm is the state-run agency that is tasked to sell government-owned power plants. - GMANews.TV
As of end-February this year, the Philippines’ total debts reached P4.164 trillion, 10.4 percent higher than the P3.771 trillion posted during the same period last year.
Forty-five percent of the country’s total obligations – amounting to P1.870 trillion – is owed to foreign creditors while the remaining 55 percent, or P2.294 trillion, is owed to domestic creditors, the BTr said in an emailed statement.
The country’s foreign debts rose 23 percent from P1.520 trillion during February last year as the government availed more loans from abroad.
Direct foreign loans rose 24.1 percent to P772.3 billion in February this year from P622.2 billion last year. Loans availed by agencies also climbed to P703.6 billion from P622.2 billion, a 24 percent increase.
Meanwhile, the national government’s domestic debts inched slightly to P2.293 trillion for the second month this year from P2.250 trillion.
The Philippines’ contingent debt – composed mainly of guarantees issued by the national government – also increased by double-digits to P554 billion from P495.3 billion.
Government-guaranteed foreign obligations – assumed by the national government if an agency fails to pay its debts – rose to P461.2 billion in February from P422.4 billion last year.
“The increase in domestic contingent obligations of P20 billion [from the previous month] was due to the adjustment resulting from late receipt of information on the actual availment of the short-term loan facility by the Power Sector Assets and Liabilities Management Corp. (Psalm)," the BTR said in a statement.
Psalm is the state-run agency that is tasked to sell government-owned power plants. - GMANews.TV
