RP’s maturing debts to peak at $1.7B in 2003

Finance Secretary Jose Isidro Camacho said yesterday that the country’s maturing obligation will peak at $1.7 billion next year.

"Next year is really the peak. It peaks at $1.7 billion...that’s the highest," Camacho said.

"On the average, the maturing debt of the government has only been in the range of $1 to $1.5 billion. We want to make sure that our maturities in the future will always be managed, so that we don’t have bunching up of maturities," he said.

Asked if the government has planned borrowings, Camacho said: "There are two factors that we always consider. One is that the lengthening of maturity is always better but we also take into account the maturity profile of our debts."

Government economists, however, said they prefer to lengthen the maturity profile of the country’s debts.

Government consistently avoids "bunching up" of maturities to allow it to schedule payments of interest and principals separately.

The maturity profile is one of the key factors affecting the government borrowing decision.

Over 90-percent of the country’s total debts are medium to long-term with maturities of at least five years.

Camacho said a higher maturing debt would impact on the government’s planned borrowing next year.

The country’s foreign commercial borrowing is expected to hit $2.4-billion next year.

As of July this year, the country’s total outstanding debt reached P2.657 trillion. Of this amount, domestic debt amounted to P1.392-trillion and foreign debt P1.265 trillion. Total National Government debt is composed of 15.6-percent of short-term debt while 24.6-percent is in medium term loans. – Ted Torres