Gov’t debt climbs to P5.359 T as of Oct

MANILA, Philippines - The total outstanding debt of the National Government climbed to P5.359 trillion as of end-October 2012, higher by P461.03 billion from the year-ago level of P4.898 trillion, the Bureau of the Treasury (BTr) reported yesterday.

This as domestic debt climbed by 18.97 percent, offsetting the decline in external debt, BTr data also showed.

Domestic debt, borrowed mostly through the issuance of Treasury bills and bonds, rose to P3.373 trillion or P537.76 billion more than the P2.835 trillion recorded in the same period last year.

On the other hand, external debt declined 3.72 percent or P73.73 billion to P1.986 trillion as of end-October 2012 from the P2.062 trillion recorded a year earlier.

Theoretically, if the P5.359 trillion is divided among each of the 94 million Filipinos, each one is indebted by P57,010 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).

Domestic debt comprised Treasury bills and bonds sold to local investors as of end-October 2012.

Foreign debt, meanwhile, comprised of debt owed to foreign creditors amounting to P1.205 trillion in bond issuances as of end-October 2012, broken down as follows: P1.027 trillion in US dollar bonds; P51.75 billion in Japanese yen bonds; P26.70 billion in euro bonds and P98.88 billion in global peso-denominated bonds.

Meanwhile, the total guaranteed debt of the National Government or debt incurred by state agencies and corporations but guaranteed by the government declined 8.53 percent compared to year-ago levels.

The total guaranteed debt of the National Government amounted to P528.54 billion as of end-October 2012, down P49.29 billion from the end-October 2011 level of P577.83 billion.

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

Of the amount, guaranteed domestic debt dropped to P155.37 billion as of end-October 2012 from P161.46 billion a year ago while the guaranteed foreign debt declined to P373.18 billion from P416.38 billion a year ago.