(Updated) Government debt climbs due to retail bond sale
12/11/2009 | 04:49 PM
(Updated) — The sale of government securities pushed the government's debt stock higher in September, the Treasury bureau reported on Friday.
As of end-September, the debt stock stood at P4.338 trillion, 2.5 percent or P105 billion higher than in the previous month.
Of the total, 44% or P1.914 trillion was owed to foreign creditors and the balance or P2.424 trillion to local creditors.
In September, the government issued retail Treasury bonds worth P114 billion, government debt paper that is available to retail investors. The securities can be bought for a minimum of P5,000.
The higher debt stock meant that each of the 92.23 million Filipinos owes about P47,000 .
The retail Treasury bond sale jacked up the government’s domestic debt by 5 percent or P114.9 billion to P2.424 trillion, while its foreign debt declined by 0.4% or P10 billion to P1.914 trillion.
National Treasurer Roberto Tan traced the lower foreign debt to the peso’s appreciation against the dollar.
On the other hand, the government’s contingent debt, mainly loan guarantees, also slid by P6 billion to P490 billion.
The government borrows from local and foreign lenders to finance the national budget.
The country's outstanding public sector debt, which includes debt of the National Government, local government units, government financial institutions and state-owned companies, stood at P5.5 trillion as of end-March. This was equivalent to 73.2 percent of the country's total economic output.
Manila earlier sought to balance the budget this year, but was derailed due to weak revenue collections that couldn't keep up with higher spending.
As of end-October, the government’s budget deficit stood at P266 billion, higher than the P250-billion spending programmed for the year.
Failure to improve revenue collections and sell state-owned assets could mean a budget deficit of as much as P320 billion this year, the Finance department earlier said.
Government debt is expected to hit P4.489 trillion this year and P4.698 trillion in 2010. -NPA/GMANews.TV
As of end-September, the debt stock stood at P4.338 trillion, 2.5 percent or P105 billion higher than in the previous month.
Of the total, 44% or P1.914 trillion was owed to foreign creditors and the balance or P2.424 trillion to local creditors.
In September, the government issued retail Treasury bonds worth P114 billion, government debt paper that is available to retail investors. The securities can be bought for a minimum of P5,000.
The higher debt stock meant that each of the 92.23 million Filipinos owes about P47,000 .
The retail Treasury bond sale jacked up the government’s domestic debt by 5 percent or P114.9 billion to P2.424 trillion, while its foreign debt declined by 0.4% or P10 billion to P1.914 trillion.
National Treasurer Roberto Tan traced the lower foreign debt to the peso’s appreciation against the dollar.
On the other hand, the government’s contingent debt, mainly loan guarantees, also slid by P6 billion to P490 billion.
The government borrows from local and foreign lenders to finance the national budget.
The country's outstanding public sector debt, which includes debt of the National Government, local government units, government financial institutions and state-owned companies, stood at P5.5 trillion as of end-March. This was equivalent to 73.2 percent of the country's total economic output.
Manila earlier sought to balance the budget this year, but was derailed due to weak revenue collections that couldn't keep up with higher spending.
As of end-October, the government’s budget deficit stood at P266 billion, higher than the P250-billion spending programmed for the year.
Failure to improve revenue collections and sell state-owned assets could mean a budget deficit of as much as P320 billion this year, the Finance department earlier said.
Government debt is expected to hit P4.489 trillion this year and P4.698 trillion in 2010. -NPA/GMANews.TV
