RP debt load hits P2.9 T

New borrowings by the Arroyo government, aggravated by the weakness of the peso, bloated the national government’s total debt stock to P2.875 trillion as of end January this year, the Department of Finance reported yesterday.

The national debt stock, consisting of P1.399 trillion worth of foreign loans and P1.476 trillion worth of domestic loans, translates to P35,946.60 worth of debt for every Filipino.

The DOF said government’s contingent liabilities also rose to P581.1 billion in January as a result of the increase in the number of government guarantees extended to several private corporations as well as government-owned and -controlled corporations.

The government had a total of P1.452 trillion in outstanding government securities, mainly Treasury bills and bonds, while another P15.6 billion was borrowed directly by several government agencies.

For 2003, the Arroyo administration has already gone full steam into its borrowing plan to bridge the P202-billion gap in the national budget. However, its forays into the credit market have been stalled by uncertainties spawned by the ongoing US-Iraq war.

National treasurer Eduardo Sergio Edeza disclosed that the government has not changed its borrowing mix for 2003. It intends to borrow 56 percent of its funding requirements from domestic sources and the balance from the international market. – Des Ferriols