The Bureau of Treasury recently reported that the Philippines’ debt rose outstandingly to 3.78% or P5.381-trillion in March 2013 from P5.089-trillion of the same month last year.
The results signify that each Filipino owes P56, 180 in foreign and domestic debt during the month.
Of the debt stock, P3.046-trillion was seen to come from domestic creditors. The results exhibited a 12.97% or P391 billion increase from P3.013 trillion local debts acquired in March 2012. The Treasury attributed the increase to the issuance of more government securities.
Meanwhile, foreign debt fell 9.6% to P1.875 trillion from P2.074 trillion a year ago.
The composition of the government debt continued to get better for domestic sources. Domestic debt accounted for 64% of the debt stock and the rest of the debt came from the 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 articulated.
Fortunately, the government’s contingent debt dropped 12.66% to P480 billion in March 2013 from P549 billion in the month last year. IMT