PH debt rises to P5.3-T in March

MANILA, Philippines – The Philippines’ total outstanding debt grew 3.78% to P5.281 trillion in March 2013 from P5.089 trillion in the same month last year, the Bureau of the Treasury reported on Friday, May 17.

This means that each Filipino owed P56,180 in foreign and domestic debt during the month.

Of the debt stock, P3.406 trillion was sourced from domestic creditors. This was 12.97% or P391 billion higher than the P3.013 trillion local debt incurred in March 2012.

The Treasury attributed the increase to the issuance of more government securities.

Foreign debt, on the other hand, fell 9.6% to P1.875 trillion from P2.074 trillion a year ago.

The composition of the government debt continued to improve in favor of domestic sources.

Domestic debt accounted for 64% of the debt stock; the rest of the debt came from foreign lenders.

“From 59% a year ago, the increased share of domestic debt results from the government’s expansion of domestic borrowing to reduce foreign exchange risk and harness ample market liquidity,” the bureau noted.

The government’s contingent debt, meanwhile, dropped 12.66% to P480 billion in March 2013 from P549 billion in the month last year. – Rappler.com