ASEAN KEY DESTINATIONS
Aquino increases foreign debt
Treasury data revealed that the national government's borrowings for the first nine months of the year reached P672.24 billion, or almost 60 percent higher than the P421.1 billion incurred during the same period last year.
The Aquino administration made a landmark issuance of global peso bonds last month, raising P44.109 billion. The maiden sale abroad of local-currency denominated IOUs was 13 times oversubscribed.
This global peso bond issuance jacked up the government's foreign debt by 25 percent to P213.84 billion this year from P168.17-billion in the same nine-month period last year.
The fiscal gap widened 9.4 percent to P259.8 billion at end-September, from P237.5 billion in the same nine-month period last year, as revenues this year were 40 percent below the target for the period.
The government aims to keep its deficit below a P325 billion ceiling by the end of the year.
Under the previous administration, the government had raised P68.51 billion from the sale abroad of the regular dollar-denominated bonds in January, and another P51.74-billion from the sale in the Japanese market of yen-denominated debt papers in March.
Topping off these commercial borrowings were P30.88 billion in program loans and P18.6 billion in project loans from foreign donors.
Despite the higher foreign borrowings, domestic debt still comprised two-thirds of the total debt for the first nine months.
Domestic debt reached P458.4 billion, or 80 percent higher than the P252.94-billion worth of obligations last year.
The domestic debt consists of P382.71-billion worth of regular Treasury bonds issued, and P119.8 billion in retail Treasury bonds (RTBs).
Comment on this Article. Send them to firstname.lastname@example.org
Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below