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Philippines government debt down 3.6 pct in 2007

MANILA, March 12 (Xinhua) -- The Philippines' government debt fell to 3.712 trillion pesos (90.31 billion U.S.
dollars) at the end of December 2007, down 3.6 percent from the previous year, the country's Bureau of
Treasury said on Wednesday.

Total debt shrank 1.0 percent from November, as the peso's appreciation against the greenback helped trim
debt by 46 billion pesos (1.12 billion dollars), the Bureau of Treasury said in a press release, adding that the
gain of other currencies against the dollar also brought down government debt by 13 billion pesos ( 316
million dollars).

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http://english.peopledaily.com.cn/90001/90777/6329503.html
Philippines foreign debt reaches $54.4 bln in third quarter

The Philippines' foreign debt reached 54.4 billion U.S. dollars in the third quarter of 2007, pushed by the
appreciation of other currencies against the greenback, the country's central bank BSP said on Friday.

This level represents a 1.4-billion (2.6 percent) increase from 53.0 billion dollars as of end-June 2007, largely
due to upward revaluation adjustments of third currency-denominated debt arising from the weakening of the
U.S. dollar, the central bank said in a statement posted on its website. Third currencies refer to currencies
other than the Philippine peso and the U.S. dollar.

The peso's strength alone was not sufficient to trim the debt, as other currencies also appreciated against the
U.S. dollar, the BSP said.

According to the BSP, the euro and yen appreciated against the U.S. dollar in the third quarter of the year,
causing the country's debts denominated in those currencies to become more expensive.

The central bank however said major external debt ratios continued to improve during the third quarter of
2007 due to higher levels of aggregate output, foreign exchange receipts and international reserves in spite
of the increase in external debt stock.

The external debt ratio, or outstanding external debt as a percentage of aggregate output or GNP, improved
to 36.8 percent, from 37.8 percent in June and 44.4 percent a year ago, the central bank said.

As a percentage of gross domestic product or GDP, the external debt ratio also improved to 40.4 percent,
from 41.3 percent in June and 48.3 percent a year ago.

The country's total principal and interest payments was equivalent to 9.8 percent of total foreign exchange
income from the export of goods and receipts from services and income, an improvement from the 11.1
percent ratio posted over the same period a year ago, said the BSP.

"The country's debt service ratio has remained well below the 20 to 25 percent international benchmark. This
indicates that the country has sufficient foreign exchange earnings to service loans maturing during the
current period," BSP Governor Amado M. Tetangco Jr. told reporters.
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http://www.nscb.gov.ph/stats/pesodollar.asp

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http://bayan-natin.blogspot.com/2009/07/philippine-external-debt-drops-by-us14.html
FRIDAY, 3 JULY 2009
Philippine External Debt Drops by US$1.4 Billion in First Quarter of 2009
Bangko Sentral
Media Releases
06.30.2009
http://www.bsp.gov.ph/publications/media.asp?id=2103

As of end-March 2009, outstanding Philippine external debt declined by US$1.4 billion to US$52.5 billion, from
the US$53.9 billion recorded in December 2008. On a year on year basis, the debt stock dropped by nearly 4
percent to US$2.1 billion from US$54.6 billion in March 2008.

External debt refers to all types of borrowings by Philippine residents from non-residents that were
approved/registered by the Bangko Sentral ng Pilipinas (BSP).

Major External Debt Ratios


BSP Governor Amando M. Tetangco, Jr. observed that: “Major external debt indicators remained at prudent
levels in the first quarter of the year.” Gross international reserves (GIR) stood at US$39.0 billion at the close
of the quarter bringing the ratio of reserves to short-term external debt to 6.0 based on original maturity,
from 5.4 in December last year, and maintaining a comfortable level of 3.4 based on remaining maturity.
Short-term accounts under the second concept pertain to obligations with original maturities of one year or
less, plus amortizations on medium and long-term accounts falling due within the next 12 months, i.e., from
April 2009 to March 2010.

The Governor also cited the continuing improvement in the country’s external debt ratios which relate total
outstanding debt to Gross National Product (GNP ). During the first quarter, a moderate improvement was
noted from 29.0 percent to 28.8 percent. The present ratio is also much lower than the 32.6 percent recorded
a year ago. Using Gross Domestic Product (GDP1 ), the ratio remained stable at 32.3 percent since end-2008.
As an indicator of solvency, the ratios have been observed to be generally declining since 2002, and are
currently at their lowest levels since their peak in 1986 when they reached 99.8 percent for debt to GNP and
97.7 percent for debt to GDP.

The external debt service ratio (DSR), on the other hand, was estimated at 10.3 percent 2 during the first
quarter, slightly higher than the 9.6 percent recorded in December 2008 and 9.8 percent in March 2008. The
ratio, which relates total principal and interest payments to exports of goods and receipts from services and
income (which include remittances by overseas Filipino workers), is a measure of liquidity, or the adequacy of
the country’s foreign exchange earnings to meet maturing principal and interest payments. It has
consistently remained below the 20 to 25 percent international benchmark.

Please refer to the attached table for the time series data from 2000.

Changes in External Debt Stock


The US$1.4 billion contraction in debt stock during the first quarter resulted from the US$1.3 billion negative
foreign exchange revaluation adjustment largely on account of the weakening of the Japanese yen against
the U.S. dollar. The currency of reporting for Philippine external debt statistics is the U.S. dollar and the debt
stock is revalued using exchange rates as of end of the report quarter.

Residents’ investments in Philippine debt papers issued abroad increased by about US$540 million during the
quarter, correspondingly reducing the external debt stock. This was, however, partially negated by net
availments of foreign borrowings of less than US$270 million, and upward audit adjustments of more than
US$200 million.

Debt Profile
The external debt portfolio remained predominantly medium to long term (MLT) in nature at the close of the
first quarter, with MLT accounts representing 88 percent of total. The weighted average maturity for all MLT
accounts (those with maturities longer than one year) was estimated at 20 years; public sector borrowings
had longer average tenors of nearly 22 years, compared to 11 years for the private sector. Short term
external debt, which accounted for 12 percent of debt stock, consisted largely of inter-bank borrowings and
trade-related obligations.

Total public sector external debt dropped to US$39.3 billion, or by US$1.0 billion from US$40.3 billion in
December 2008, mainly as a result of negative foreign exchange revaluation adjustments (US$1.2 billion),
with yen-denominated debts accounting for the bulk (US$960 million).

Private sector external debt similarly declined to US$13.2 billion by the first quarter of the year from US$13.5
billion in December 2008. With the decline in both public and private sector borrowings, their share to total
remained at the end-2008 levels of 75 percent and 25 percent, respectively.

The creditor profile also remained unchanged: official creditors (consisting of multilateral institutions and
bilateral creditors) continued to have the largest exposures at 45 percent of total, followed by foreign holders
of bonds and notes with 33 percent, and foreign banks and other financial institutions, 16 percent. The rest of
the creditors were mostly foreign suppliers and buyers.

The currency composition of external debt was likewise the same as of end-2008: U.S. dollar-denominated
accounts represented 51 percent of total; Japanese yen-denominated accounts, 29 percent; multi-currency
loans from the Asian Development Bank and the World Bank, 10 percent; and the rest of the accounts
comprising the 10 percent balance were denominated in 16 other currencies.

http://tsikot.yehey.com/forums/showthread.php?t=62262
Where did RP debt go?

By Judith Balea, abs-cbnNEWS.com | 08/22/2009 9:33 PM

MANILA - All borrowings under President Arroyo's term--that racked up the country's outstanding debt
to a whopping P4.2 trillion as of 2008 from only P2.2 trillion in 2000--were necessary, her economic
managers argue, amid accusations the President was responsible for the country's deepening financial woes.
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