Gov't debt stock rises to P4.55-T in May

ABS-CBN News

Posted at Aug 10 2010 01:59 PM | Updated as of Aug 10 2010 11:01 PM

MANILA, Philippines - Outstanding debt of the national government rose by 2.7% to P4.554 trillion in May from the previous month's level of P4.436 trillion, data from the Bureau of Treasury showed.

Of the amount, P2.583 trillion or 57% was owed to domestic creditors, while the balance of P1.971 trillion was sourced from foreign lenders.

Domestic debts increased by P35 billion or 1.4% from April's level as the government issued more securities.

On the other hand, foreign debt, consisted mainly of direct loans by government agencies, rose by P83 billion or 4.3%, partly due to the depreciation of the peso as well as appreciation of other third currencies against the US dollar.

Meanwhile, the contingent debt of the government, composed mainly of state guarantees, rose to P616 billion in May from P604 billion in April.

The government aims to reduce its debt to gross domestic product (GDP) ratio by 10 percentage points to 47% by 2013 from 57% in 2009 to improve the country's credit worthiness and ability to attract investors.

Finance Secretary Cesar Purisima had also said the Aquino administration wants to cut the country's debt ratio so it could invest heavily in infrastructure, agriculture and farm to market roads.