National government debt climbs 5%

National government debt climbs 5%

01 Jul 2014, Business Mirror

Written by David Cagahastian

The nation’s fiscal planners made a conscious effort to ramp up their domestic borrowing activities in the first five months and this showed clearly in latest debt data showing a 5- percent annual increase in national government debt to P5.63 trillion.

This bodes well for the $250-billion economy whose economic managers have endeavored to ramp up as much as they could the disbursement of government funds for the buildup of public infrastructure.

At the same time, the Bureau of the Treasury said the economic managers, likewise, sought to keep the nation’s debts well under control by paying down a significant portion of the IOUs as these mature.

Treasury Chief Rosalia V. de Leon said the ramping up of the debt stock amounted to P269 billion in local currency terms.

National government debt obtained from domestic creditors grew 7.1 percent year-on-year to P3.705 trillion. The previous April, such debt totaled only P3.686 trillion, or an increase by more than P19 billion.

National government debt obtained from foreign creditors grew 1.3 percent or by P24.03 billion to P1.926 trillion. According to de Leon, these were government IOUs in the form of US dollar bonds or notes, Japanese yen bonds, euro-denominated bonds, as well as peso global bonds sold during the period.