Wednesday, May 29, 2024

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The amount of unpaid debt has decreased to P14.27 trillion.


By Luisa Maria Jacinta C. Jocson, Reporter

The federal government’s

The Bureau of the Treasury (BTr) reported that the outstanding debt as of end-September decreased to P14.27 trillion, mainly due to the net redemption of both foreign and domestic debt.

According to information from the BTr, the amount of debt owed decreased by 0.6% from P14.35 trillion at the end of August.

The total indicates a decrease of P80.9 billion or 0.6% compared to the previous month, mainly because of repayments made towards domestic and external debts.
In a press statement on Tuesday, the BTr stated that it would return all notifications and comments for the month.

National Government outstanding debt

The national government’s debt increased by 5.6% from P13.52 trillion compared to the previous year.

The amount of debt that is still owed rose by 6.3% from P13.42 trillion at the end of December 2022.

The majority, 68.2%, of NG’s debt portfolio was acquired from domestic sources.

The amount of money borrowed within the country decreased by 0.6%, reaching P9.73 trillion at the end of September compared to P9.79 trillion the previous month, due to the government’s repayment of securities.

There was a 4.7% increase in domestic debt from P9.3 trillion compared to the same period last year.

During the nine-month period, the majority of the domestic debt was made up of government securities.

The BTr reported that domestic debt issuance for the month was P121.1 billion, with redemption at P177.9 billion. This resulted in a net repayment of P56.8 billion.


ffect on the company’s financial performance.”

The decrease in local currency value compared to the US dollar had little impact on the company’s financial results.ff

The report stated that the effect on debt stock valuation was only P0.01 billion.

According to information from the Treasury, the peso ended at P56.66 compared to the dollar at the end of September, only slightly weaker by 0.02% from its end-August value of P56.651.

At the end of September, foreign debt decreased by 0.5% to P4.53 trillion from the previous month’s P4.56 trillion, attributed to positive movements in third-currency rates.fl

Changes in the amount of money borrowed from other countries and the total amount of money paid back.

The Bureau of the Treasury (BTr) reported that the significant external debt for September decreased by P8 billion as a result of paying off foreign loans and a decrease of P16.9 billion due to the depreciation of third currencies compared to the US dollar. Additionally, there was a P0.7 billion increase in peso depreciation against the US dollar.

From P4.22 trillion, the foreign debt increased by 7.5% compared to the previous year.

Split up, borrowed funds from outside sources totaled P2.07 trillion in loans and P2.47 trillion in international bonds.

At the end of September, the NG’s total guaranteed liabilities decreased by 1.2% to P362.22 billion from P366.58 billion at the end of August.

The guaranteed debt decreased by 8.8% from P397.22 billion compared to the previous year.

The Bureau of the Treasury (BTr) stated that the decrease in the amount of guaranteed debt was due to a combined repayment of P1.6 billion for domestic guarantees and P1.4 billion for external guarantees.

Furthermore, the amount of guarantees denominated in a third currency decreased by P1.3 billion due to currency changes, counterbalancing the P0.03-billion increase in debt caused by the Philippine peso depreciating against the US dollar,” the statement included.

According to Michael L. Ricafort, the Chief Economist of Rizal Commercial Banking Corp., the decrease in debt stock can be attributed to the net payment of debt and the higher maturity of government bonds as of September.

“For the coming months, especially in the fourth quarter up to February 2024, relatively lower maturity of government debt and budget deficit that needs to be fi

According to a message sent through Viber, additional borrowing may result in an increase in the outstanding debt for NG, potentially reaching a new record high.

pletes

During the first nine months of the year, the budget for the NG is depleted.fi

The city’s total amount decreased by 2.89% to P983.5 billion.   

ict of 5%

In 2023, the government plans to have a budget deficit of 5%.i

The maximum limit for P1.499 trillion, which is equal to 6.1% of the gross domestic product (GDP), has been set.

On Tuesday, Finance Secretary Benjamin E. Diokno stated that the decreased deficit suggests that the debt-to-GDP ratio of NG will remain stable.

As of June, the ratio of NG’s debt to GDP was 61%, which is higher than the threshold of 60% deemed acceptable by international lenders for developing countries.

According to Mr. Diokno, a smaller deficit will aid in reaching the goal of reducing the debt-to-GDP ratio to 61.2% in the current year and below 60% by 2025.

flation also bodes well for the economy.”

In the last quarter of 2023, we anticipate an increase in tax revenue collections due to a boost in economic activity during the holiday season. Additionally, the government plans to increase their spending, which will further contribute to economic improvement. The projected decrease in inflation also has positive implications for the overall economy.fl

The remaining months of the year may also contribute to consumption, which could be significant.fi

“He mentioned that the tax base is insufficient.”

Issuance in November were signs of investor confidence.

Mr. Ricafort also pointed out that the issuance of retail dollar bonds in October and the upcoming issuance of Sukuk bonds in November demonstrate investor confidence.
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The possibility of ering leading to a rise in outstanding debt is a concern in the upcoming months.

first bond sale

The initial bond sale by the government generated $1.26 billion in revenue. first retail dollar bond off

During the time of Marcos’ leadership, there was widespread plundering and corruption.ff

The time frame for the retail dollar bonds was between September 27 and October 6.

The Department of Finance has also previously declared their intention to release Sukuk bonds by the end of November. Their goal is to secure $1 billion in funds from the o.ffer.

The government intends to borrow P2.207 trillion this year, with P1.654 trillion coming from domestic sources and P553.5 billion from foreign sources.