NG debt down 2% to P3.95T

The National Government (NG) debt decreased by two percent to P3.95 trillion as of October 2005, from P4.01 trillion as of September 2005, official documents show.

Data from the Bureau of Treasury (BTr) show the drop in the outstanding NG debt was brought about by a decline in foreign borrowings.

During the period, NG’s foreign debt dropped by 3.7 percent or P69.26 billion to P1.805 trillion from September’s level of P1.874 trillion.

The decrease in foreign debts was due to a P29-billion net repayment and the appreciation of the peso and other currencies against the dollar by P32 billion and P8 billion, respectively.

Foreign loans secured by government agencies decreased to P741.15 billion as of end-October, from end-September’s P779.98 billion and P828.14 billion in October 2004.

Foreign denominated securities’ issuance also declined to P1.06 trillion as of end-October 2005 from end-September 2005’s P1.09 trillion but higher than end-October 2004 level of P960.14 billion.

Dollar denominated bonds as of end-October stood at P956.43 billion versus September 2005’s P984.14 billion. This level was higher than the P821.07 billion in October 2004.

Issuance of Japanese yen bonds as of end-October 2005 dropped to P23.85 billion versus P24.78 billion in end-September 2005 and P45.06 billion in October 2004.

The government also reduced its Eurobond borrowings to P80.28 billion in October 2005 from September’s P82.01 billion and P94 billion in October 2004.

P1.81 trillion or 46 percent of the total outstanding debt of NG is owed to foreign creditors.

The bigger portion, 54 percent or P2.15 trillion, is owed to domestic creditors.

Finance Secretary Margarito Teves said the NG debt should be reduced to 50.5 percent of the gross domestic product (GDP) in 2010 from 80.4 percent in 2004. In 2005, NG debt level is expected to go down to 79 percent.