Phl debt rises to P5.156 trillion as of July

MANILA, Philippines - The total outstanding debt of the national government climbed to P5.156 trillion as of end-July 2012, up by 410.51 billion or 8.65 percent than the year-ago level of P4.746 trillion, the Bureau of the Treasury yesterday reported.

Compared to the debt stock as of end-June 2012 of P5.100 trillion, the latest debt level is up 1.10 percent or by P56.06 billion.

This as both domestic and foreign debt climbed during the period but debt owed to local creditors rose faster than year-ago levels.

Theoretically, at this level, each of the 94 million Filipinos is indebted by P54,851 to foreign and domestic creditors.

The government’s outstanding debt represents direct and assumed loans to various foreign and local lenders, incurred mainly to finance expenditures such as education and public health.

It comes from debt securities sold to local investors, foreign bonds issued by the government and direct loans availed by government agencies and relent to government-owned and controlled corporations (GOCCs).

 According to the Treasury, domestic debt amounted to P3.117 trillion as of end-July 2012, up 13.95 percent or P381.72 billion from the end-June 2011 level of P2.735 trillion.

Foreign debt, meanwhile, rose 1.43 percent or P28.79 billion to P2.039 trillion as of end-July 2012 from P2.010 trillion a year ago.

Bulk of the government’s domestic debt comprise of Treasury bills and bonds, which amounted to P3.114 trillion as of end-July 2012. The rest were direct loans availed of by government agencies and loans assumed by the national government.

Foreign debt, meanwhile, comprised of debt owed to foreign creditors comprised of P1.224 trillion in bond issuances as of end-July, broken down as follows: P1.046 trillion in US dollar bonds; P53.67 billion in Japanese Yen bonds; P25.72 billion in Euro bonds and P98.88 billion in global peso-denominated bonds.

On the other hand, the total guaranteed debt of the national government or debt incurred by state agencies and corporations but guaranteed by the government declined compared to year-ago levels.

The total guaranteed debt of the national government amounted to P543 billion as of end-July 2012, down P43.24 billion or 7.37 percent from the end-July 2011 level of P586 billion.

This as government’s guaranteed domestic and foreign debt declined during the period.

Guaranteed domestic debt dropped to P155.56 billion as of end-July 2012 from P161.64 billion a year ago while the guaranteed foreign debt declined to P387.81 billion as of end-July 2012 from P424.97 billion a year ago.

National Treasurer Roberto Tan said in an interview that guaranteed debt translates to actual debt when it is called upon by the issuer.

According to the 2012 fiscal program, the debt stock will reach P5.52 trillion by year’s end and climb to P5.91 trillion in 2013.

The Aquino administration hopes to slash the budget deficit to P279 billion this year or 2.6 percent of gross domestic product (GDP) and to P241 billion or 2 percent of GDP in 2013.