MANILA – Each 92.2 million Filipino now owes P46,178 in April, or P325 more than the previous month, as the country’s debt stock increased by P30.4 billion in April.
A weaker peso and an increase in domestic borrowing pushed up the government’s outstanding debt up by 0.7% at end-April from the previous month, the Bureau of Treasury said.
The Philippines raised its total borrowing needs for 2009 by more than $1 billion after it widened its budget deficit goal to a record P250 billion, or 3.2% of gross domestic product, from 2.5% of GDP.
Last week, the government sold $750 million in global bonds, the last issue of its kind for the year, to help plug a higher budget deficit. It still needs raise about $250 million in additional financing on top of its 2009 programmed debt issues.
The government is considering borrowing around $1.5 billion from the overseas debt market in 2010 and may raise some of the amount this year ahead of presidential elections in May.
The government may also borrow P467.1 billion from the local debt market next year in line with its projection of a fiscal shortfall of P208 billion, or 2.5% of GDP, in 2010.
56:44 ratio
About 56% of the total government debt were sourced domestically while 44% were sourced from foreign creditors.
Debt papers such as T-bills, T-bonds, and retail treasury bonds issued by the national government increased by P14.9 billion to P2.392 trillion as of end-April from P2.377 trillion as of end-March.
On the other hand, the government’s foreign loan portfolio went up by P15.7 billion to P1.857 trillion from P1.841 trillion due to the disbursement of official development assistance loans, the issuance of more foreign-denominated securities, and the weakening of the peso against the US dollar.
Data showed that direct loans from lending agencies including World Bank, Asian Development Bank, Japan Bank for International Cooperation increased by P11 billion to P794.7 billion from P783.7 billion.
On the other hand, foreign-denominated securities issued by the government inched by P4.7 billion to P1.062 trillion as of end-April from P1.057 trillion as of end-March. The Philippines floated $1.5 billion worth of US dollar-denominated bonds in January compared to $750 million in the same month last year.
US dollar-denominated debt increased by P4 billion to P963.3 billion from P959.4 billion while Eurobonds inched up by P700 million to P74.3 billion from P73.6 billion. The government’s Yen-denominated debt was unchanged at P25 billion.
Data from the Bangko Sentral ng Pilipinas showed that the peso weakened and closed at P48.704 to $1 in April from P48.419 to $1 in March.
The increase, according to the treasury, was partially offset by the weakening of other currencies against the US dollar.
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Brigadier General Danilo Lim
Lito Atienza