Skip to content

Philippines Today

home of the Global Filipino

Menu
  • News Stories
  • Regional News
  • Business & Economy
  • Science & Technology
  • International
Menu

RP govt trims debt by P36.7b

Posted on March 15, 2007

PHILIPPINE NEWS SERVICE — The ability of the government to pay more due to its strong fiscal position and the strengthening of the peso against the US dollar enabled the Philippines to reduce debt stock by close to 1 percent last year.

National Treasurer Omar Cruz reported yesterday that the government debt reached P3.851 trillion or 64 percent of gross domestic product last year, down P36.7 billion from P3.888 trillion or 72 percent of GDP in 2005.

This means that each of the 88.7 million Filipinos has an average debt of P43,421.65.

Cruz said the lower debt was a result of a reduction in borrowings after the government brought down its budget deficit to its lowest level in eight years.

The national government trimmed the budget shortfall to P62.2 billion or 1.04 percent of GDP last year from P146.8 billion or 2.7 percent of GDP in 2005. This was less than half of the programmed P125 billion or 2.1 percent of GDP for 2006.

Statistics showed that about 56 percent or P2.154 trillion of the government’s total outstanding debt stock last year came from domestic sources while 44 percent or P1.697 trillion were obtained from foreign creditors.

Domestic debt declined P10.2 billion from P2.164 trillion in 2005 while foreign debt plunged P26.5 billion from P1.723 trillion.

Cruz said the decline in domestic debt could be attributed to the decision to issue less government securities and redeem more treasury bills or treasury bonds due to its strong fiscal position.

He said the government slashed its foreign debt after gaining P13 billion from the appreciation of the peso and third currencies against the greenback and another P13 billion from net repayments.

A study conducted by the Department of Finance show the Philippines saves as much as P5.14 billion for every percentage point decline in interest rates and P4.4 billion for every unit of appreciation of the peso against the greenback.

Data from the Bureau of Treasury show that the country’s foreign debt consisted of P1.021 trillion in bonds, of which P927 billion are denominated in US dollar, P74.2 billion in euros and P20.6 billion in Japanese yen. Another P674.4 billion are in the form of direct loans.

The Philippines relies heavily on foreign and domestic borrowings to finance its budget deficit as the government cannot raise enough revenues to bankroll expenditures.

Cruz said the government also relied heavily on its debt consolidation program.

“This is a result of the Republic’s debt consolidation program in line with its goal to bring down the debt down to 56 percent of GDP by 2008,” Cruz said.

As part of its fiscal consolidation program aimed at achieving a balanced budget by the end of 2008, the government hopes to trim the country’s debt stock to 51.7 percent of GDP next year, 45.8 percent of GDP by 2009, and finally to 40.7 percent of GDP by 2010.

Share this:

  • Facebook
  • Twitter
  • LinkedIn
  • Pinterest
  • More
  • Tumblr
  • Reddit

Related

News Categories

  • Announcement (34)
  • Business & Economy (1,567)
  • Comment and Opinion (74)
    • Random Thoughts (18)
  • Current Issues (425)
    • Charter Change (1)
    • Election (228)
    • Population (6)
  • International (389)
  • Life In Japan (66)
    • Everything Japan (41)
  • Literary (34)
  • Miscellaneous (610)
  • News Stories (5,312)
  • OFW Corner (297)
  • Others (75)
  • People (408)
  • Press Releases (163)
  • Regional News (3,362)
  • Science and Technology (502)
  • Sports & Entertainment (287)

Latest News

  • BSP keeps policy rates anew December 17, 2015
  • NEDA cuts PHL additional rice import for 2016 by 25% December 17, 2015
  • DA cites serious implications of banning genetically modified products December 17, 2015
  • BBL is not yet dead – Drilon December 17, 2015
  • Comelec recognizes Duterte’s CoC for president December 17, 2015
  • NEDA chief sees 2015 growth at 6% despite typhoons December 17, 2015
  • House of Representatives ratifies bicam report on P3.002-T national budget for 2016 December 17, 2015
  • Cebu-based developer invests PHP430M to build 709 townhouse units in north Cebu town December 17, 2015
  • City gov’t eyes P75-M income from economic enterprise December 17, 2015
  • Baguio City LGU presents traffic plan for holiday season December 17, 2015

Archives

Meta

  • Log in
  • Entries feed
  • Comments feed
  • WordPress.org

Science and Technology

  • DOST-ICTO targets 500,000 web-based workers from countryside by 2016
  • (Feature) STARBOOKS: A ‘makeover’ for librarians
  • Science, research reduce ‘cocolisap’ hotspot areas in PHL
  • Montejo to further improve PAGASA and empower scientists
  • 1st PPP in biomedical research produces knee replacement system fit for Asians

Press Releases

  • Microsoft to buy Nokia’s mobile devices business for 5.44-B euros
  • New World Bank climate change report should spur SEA and world leaders into action: Greenpeace
  • Save the Philippine Seas before it’s too late — Greenpeace
  • Palanca Awards’ last call for entries
  • Philippines joins the global call for Arctic protection

Comment and Opinion

  • Remembering the dead is a celebration of life
  • Killer earthquake unlikely to hit Panay Island in near future – analyst
  • It’s not just more fun to invest in the Philippines, it is also profitable, says President Aquino
  • How does one differentiate a tamaraw from a carabao?
  • Fun is not just about the place, it is also about the people, says DOT chief

OFW Corner

  • Ebola infection risk low in Croatia
  • Death toll rises to 41, over 100 still missing in landslide in India
  • Asbestos use in construction a labor hazard
  • 500,000 OFWs to benefit POEA on-line transactions — Baldoz
  • 25 distressed OFWs return home from Riyadh
©2025 Philippines Today | Design: Newspaperly WordPress Theme