The total National Government and private sector borrowings as of September reached .39 billion, finance and central bank data show.
This includes NG’s 4-million ROP 2024 global bonds and 5-million reopened ROP 2031 bond exchange.
The same document revealed that combined, public and private sectors paid principal repayments amounting to .171 billion during the January-September period.
Interest payments for the first nine months, in the meantime, reached .897 billion or a net outflow of .677 billion.
"This net outflow was bigger than comparable period last year when .244 billion in net outflow was registered," government sources said. "These transactions reflect the decisions of both public and private sectors, both awash with external liquidity, to pay down their external debt obligations."
The biggest payors were the Bangko Sentral ng Pilipinas, the National Power Corp. and the Development Bank of the Philippines.
The NG and the BSP are prepaying more loans to reduce the country’s debt.
"It would be a good signal to the market that we’re paying our debt," Finance Secretary Margarito B. Teves said.
The central bank has already prepaid .17 billion of its loans this year, saving million in interests. The NG prepaid selected loans from the Asian Development Bank worth million, which will save the government .4 million in interest payments.
Prepayment sends a positive signal to the market that one, stock of debt is going down; two, the government is saving on interest payments; and lastly that the government is now more than capable of settling its foreign exchange obligations. As of June 2006, the country’s external debt is lower at .9 billion.
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