September 10, 2013

Debt-to-GDP ratio continues to fall

The ratio of the country’s debt to gross domestic product (GDP) continued to fall in the first half largely due to the government’s proactive liability management program.

The debt-toGDP ratio, a measure used by debt watchers to assess the creditworthiness of governments, stood at 49.5 percent as of end-June, lower than the 51.5 percent registered at the end of 2012.

The government’s outstanding debt reached P5.451 trillion as of June, nearly seven percent higher than the P5.101 trillion recorded in the same period last year as the state ramped up domestic borrowings.

Of the total government debt, P3.5 trillion or 64.2 percent came from domestic lenders while P1.95 trillion was sourced overseas for a 64 to 36 distribution of  domestic and external debt. - WealthSec