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By Chino S. Leyco, Reporter
THE Philippines raised its planned debt service
payments this year.
Department of Finance data showed that the
national government’s debt servicing program this year would reach
P624.1 billion, equivalent to 8.6 percent of the country’s
economy, as measured by its gross domestic product. This is P11.3
billion higher than last year’s P612.8 billion program.
The Bureau of Treasury has yet to release data
showing the actual debt service payments the Philippines made last
year.
Debt servicing refers to payments of both
interest and principal. The debt service burden excludes actual
outflows such as rescheduling or refinancing of existing debt and
conversion of debt to equity.
In November last year, debt payments dropped due
to lower interest rates and the peso’s rapid appreciation.
Treasury data showed that the national government’s debt servicing
reached P28.466 billion, or P2.846 billion lower than the P31.312
billion paid out last October. This brought the 11-month total to
P591.778 billion.
In 2006, total debt servicing reached P854.370
billion.
Interest payments dropped by P4.796 billion to
P13.828 billion in November from P18.624 billion the month before.
Total interest payments reached P255.141 billion in the first 11
months last year.
Of the total, domestic and foreign interest
payments reached P147.173 billion and P107.968 billion,
respectively.
Payment of principal grew P1.950 billion to
P14.638 billion last October from P12.688 billion last September.
This brought the 10-month principal payments to P33.5637 billion,
consisting of domestic payments of P277.836 billion and foreign
payments of P557.801 billion.
The Finance department said that due to low
interest rates and a stronger peso, the government saved P32 billion
at end-November in expenditures.
Government’s total spending in the first 11
months reached P1.032 trillion.
The lower-than-expected interest rates meant the
government would spend less for interest payments, both for domestic
and foreign loans, while the appreciation of the peso trimmed the
government’s foreign-currency denominated debts in peso terms.
The peso averaged 42.798 during the period,
making it Asia’s best performer last year.
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