ASEAN KEY DESTINATIONS
Philippines redeems more debt than it issues
The Aquino administration paid off more debt than it borrowed during the first two months of 2011 Data from the Bureau of the Treasury revealed that the government’s financing position at end-February posted a net redemption of P167.67 billion (US$3.9 billion), or more than twice the P69.36 billion recorded last year.
In February alone, net redemptions stood at P102.96 billion, almost twice the P58.61 billion worth of net redemptions a year ago.
The gross external borrowings of P1.83 billion in February this year was almost 400 percent higher than the P380 million recorded in the same month last year.
Bulk of external borrowings for the month was accounted for by project loans, or financing for specific projects, amounting to P1.71 billion, and program loans, or those that supplement the budgetary needs of the sovereign at P123 million.
The equivalent of P63.2 billion of external debts were paid off during the month, which brought net external redemptions to P61.36 billion.
The government registered gross redemptions of P10.43 billion in domestic debt, as P19.34-billion worth of bonds that were issued were offset by P29.77-billion worth of Treasury bills that were paid during the month.
February’s gross redemptions of P10.43 billion compared with the P37.1-billion worth of gross borrowings registered in the same month last year.
Seven-year bonds amounting to P10.34 billion accounted for bulk of the P19.34-billion worth of long-term government securities issued for the month. Other bonds issued were 20-year notes (P6 billion), and 25-year notes (P3 billion).
For the year, the government intends to limit its budget deficit to about P290 billion, or 3.2 of the country’s gross domestic product.
At the end of February, the fiscal gap stood at P8.1 billion.
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