Sunday, November 4, 2012

Gov’t paid P580B in debts in 1st 9 months


Principal accounts for P334.5B


By



MANILA, Philippines—The government spent P579.8 billion in the nine months to September to pay portion of its debts, according to the Bureau of Treasury.


The amount was 3 percent less than the P597.5 billion paid in the same period last year.


From January to September, the government settled P334.5 billion in principal, including P287.9 billion in domestic debt and P46.6 billion in foreign loans.


The total principal payment in those nine months was 11 percent lower than the P375.1 billion paid a year ago.


The government also paid P245.2 billion in interest, covering P153.1 billion charged on domestic debt and P92.2 billion on foreign borrowings.


Total interest payment for the period was 10 percent higher than the P222.4 billion recorded in the same period last year.


Budget Secretary Florencio B. Abad said in early October that spending on interest payments went up because the BTr issued a bigger amount of fixed rate treasury bills and retail bonds.


Even then, Abad said, the January to September interest payments were P14 billion or 5.4 percent less than the programmed level.


BTr data showed that the biggest contributors to new debt this year were still the issuance retail treasury bonds, which amounted to P179.8 billion; global bonds, P66 billion and regular domestic bonds, P364 billion.


The government floated some P53 billion in five-year treasury bonds, P143.4 billion in seven-year, P95.3 billion in 10-year, P57.9 billion in 20-year and P14.4 billion in 25-year bonds.


In September alone, the government paid P68.7 billion in financial obligations, including P52.4 billion in domestic debt and P16.4 billion in foreign loans.


The month’s total was 5 percent lower than the P72.4 billion paid a year ago.


As for principal payments, the Treasury shelled out P44.6 billion in September, lower by 4 percent than the previous P46.6 billion.


Interest payments for the month reached P24.1 billion or 7 percent less than the P25.8 billion settled in the same month last year.


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Tags: Finance , Government Debt , Philippines



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