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A STRONG peso caused the government’s debt to decline in January
from a year ago even as more borrowings were incurred for the month.
In a statement, the Bureau of Treasury said the
government’s outstanding obligations in the first month this year
stood at P3.732 trillion, or 3.6 percent lower than the P3.872
billion registered in the same month last year. The January debt
level however was slightly higher than the P3.712 trillion recorded
the month before.
With the country’s population of 88.57
million, every Filipino owes the government’s creditors about
P42,000.
Of the total amount outstanding in January,
P2.227 trillion was sourced from domestic lenders, comprising
Treasury bills and bonds the government auctioned off that month.
This was higher than the P2.141 trillion in the same month last
year.
Foreigners lent the remaining P1.505 trillion,
which was 13 percent lower than the P1.730 trillion a year ago.
The government said the decrease in its foreign
debt was due to P33 billion in savings arising from the peso’s
appreciation against the dollar. However, this was partially offset
by the P27 billion in net availments and net depreciation of third
currencies against the dollar.
Meanwhile the government’s contingent debt,
composed mainly of guarantees on loans taken out by its agencies,
stood at P487 billion, 13.5 percent lower than last year’s P563
billion. The end-January level however was slightly higher than the
P484 billion recorded in December.
“The increase was due to the combined effects
of the P1 billion net repayments, P13-billion net depreciation of
third currencies against the dollar and P 9-billion appreciation of
the peso against the dollar,” the bureau said.
The Philippines borrows heavily to pay off
maturing obligations and at the same time finance the government’s
budget deficit.
-- Chino S. Leyco
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