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THE Philippines’ outstanding debt is projected to
rise this year even as the peso continues to appreciate against the
dollar.
Department of Finance data showed
the national government debt is seen to reach P3.947 trillion this
year, or higher than the programmed P3.93 trillion last year.
If the government meets the
programmed debt this year, every Filipino would owe the country’s
creditors P51,606.
Despite a higher level of
obligations, the government hopes to trim the debt to gross domestic
product (GDP) ratio to 54.2 percent this year, from an estimated
59.4 percent last year. This as the government expects the economy,
as measured by the country’s GDP, to expand albeit at a slower
rate this year.
The debt-to-GDP ratio is a
closely watched measure of the sustainability of the country’s
obligations, with a declining ratio pointing to more manageable debt
levels.
At end-September last year,
government debt stood at P3.83 trillion as against the P3.85
trillion in 2006.
Last week, the Monetary Board
gave the national government the green light to borrow abroad
through the sale of $500 million in bonds or IOUs. The bond offer,
which completes the country’s entire foreign commercial borrowing
program this year, is scheduled in the first quarter of the year.
The Philippines borrows heavily
to pay off maturing foreign and domestic obligations and at the same
time finance the budget deficit. It intends to borrow P346.1 billion
this year or 9.13 percent lower than last year’s P380.9 billion.
Of the total amount to be
borrowed this year, about P328.4 billion would be used to pay off
maturing foreign and domestic obligations while P17.7 billion would
be used to finance the deficit.
Finance Undersecretary and acting
national treasurer Roberto B. Tan, earlier said that the total
borrowings sourced through the local sale of Treasury bills and
bonds last year reached P262.098 billion, from P247 billion a year
earlier.
The government is set to borrow
P84 billion from the local market in the first quarter of this year,
higher than the amount it raised a year earlier and in the fourth
quarter of last year. The planned increase in domestic borrowings is
aimed at stemming the rise of the peso, which has been hurting
overseas Filipinos and exporters.
At the Philippine Dealing System,
the local currency closed at 40.55 against the dollar Monday, higher
versus Friday’s 40.60 finish. Total volume traded reached $407
billion.
--Chino S. Leyco
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