Total Philippine debt climbs 5.3% to P4.99-B in January

MANILA, Philippines – The government’s total outstanding debt climbed by 5.3% in January as fiscal agencies turned more to local investors to help plug the budget deficit.

According to the Bureau of Treasury data, total outstanding debt stood at P4.993 trillion in January, increasing by P252.6 billion from P4.740 trillion  

Of the total P4.993 trillion debts:

• 57.62% or P2.877 trillion is owed to local lenders, up 7.6% year-on-year due to more issuance of T-bills and bonds than those settled during the period  
• 42.38% or P2.115 trillion is owed to foreign creditors, up 2.4% y-o-y

Meantime, contingent debt, representing government guarantees, climbed 3.5% to P569 billion. The peso appreciation contributed to the increase.

The Aquino administration hopes to slash the budget deficit as a ratio of gross domestic product (GDP) to 2% in 2013 from the projected 2.6% this year.

This year, the deficit is projected to hit roughly P280 billion from the P197.7 billion incurred in 2011. – Rappler.com