Connect with us

Hi, what are you looking for?

Economy

Outstanding debt hits P10 trillion in October

The outstanding debt of the national government (NG) reached P10 trillion as of end-October, as it borrowed more to fund the country’s pandemic response.

The Bureau of the Treasury (BTr) said on Friday that outstanding debt jumped 7.03% to P10.028 trillion as of end-October from the P9.369 trillion as of end-September. The October debt stock is also 2.84% higher than the P7.906 trillion logged a year ago.

The NG debt portfolio as of October was already 29.7% more than the P7.731-triliion level at the end of 2019.

Around two-thirds (71.6%) of the debt were from domestic sources while 28.4% came externally.

The local debt stock rose 9.9% month-on-month to P7.077 trillion due to the issuance of domestic government securities alongside additional provisional advances from the Bangko Sentral ng Pilipinas (BSP), the BTr said.

In October, issued government securities reached P6.536 billion, up by 2.88% from September’s P6.437 billion.

In the same month, the BSP approved P540 billion in fresh provisional advances to the national government, which should be settled by Dec. 29 at zero interest.

Meanwhile, foreign borrowings rose 0.7% month-on-month to P2.95 trillion.

“The increment in external debt was attributed to the P18.98 billion net availment of external loans and P2.42 billion net appreciation of third-currency against the dollar, offsetting the effect of local-currency appreciation amounting to P1.57 billion,” the BTr said.

In 2019, debt-to-gross domestic product (GDP) ratio stood at a low of 39.6%. The government expects this to balloon to 53.9% this year as the debt stock piles up during the crisis.

“We will not abandon the prudent fiscal management set by President [Rodrigo R.] Duterte when he assumed office in 2016 and put us in a good fiscal position ahead of the pandemic,” the Development Budget Coordination Committee said on Thursday.

Amid lower revenues during the pandemic, the government is planning to borrow more to plug the budget deficit that may reach 7.6% of GDP this 2020. — Luz Wendy T. Noble

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

WASHINGTON D.C. — The United States is seeking to form a coalition of countries to drive negotiations on a global plastic pollution treaty, weeks...

Economy

By Diego Gabriel C. Robles  THE WORLD BANK (WB) upgraded its growth forecast for the Philippines for this year and 2023, citing an “accommodative”...

Economy

THE PHILIPPINE auto industry’s sales recovery will likely be derailed if a measure reimposing excise taxes on pickup trucks is signed into law, according...

Economy

THE BANGKO SENTRAL ng Pilipinas (BSP) may deliver a second off-cycle rate hike in early November when the US Federal Reserve is expected to...

Economy

THE ASIAN Development Bank (ADB) is planning to allocate at least $14 billion for a program aimed at easing a food crisis in the...

Investing

With the reversal of the 1.25% rise in National Insurance Contributions happening on the 6th of November, employers across the nation have an opportunity...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Investing

The minute that any question pops into your head, you can simply ask Google. No longer do we have to pour over books and...

Investing

Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...

Economy

Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.