Knowing the Debt of Philippines

in Financial Education 101

Updated: July 28, 2011

Do you have debt? I think most of people have debt or had been in debt before. If you’re in debt, I think is your responsibility to pay for it faithfully. Even the Philippine government has debt because of budget deficit, the government needs to borrow money from domestic or foreign financial institution to support its projects and financial needs.

External debt or foreign debt is that part of the total debt of a country that is owed to creditors outside the country. The debtors can be the government, corporations or private banks and financial institution. The debt includes money owed to private commercial banks, other governments, or international financial institutions such as the IMF and World Bank.
Internal debt, on the other hand, is that part of the total debt of a country that is owed to creditors inside the country or this is domestic debt.

In the Philippines, we have both internal and external debt. In the latest data available, the internal debt of Philippines is greater the its external debt. This internal debt is owed to private banks and other financial institution located in the Philippines.

According to Bureau of the Treasury of the Philippine government, as of end of April  2011, the external debt or foreign of debt of the Philippines reached P 2,026 billion (43% of total debt). While the internal or domestic debt reached to P2,686 billion (57% of total  Philippine debt).
In total, the Philippines has a combined debt of P4,712 billion.

In your opinion, how the Philippine government can pay its debt?

Note: FOREX Rate Used – P46.35

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LelouchViVendetta January 24, 2012 at 02:09

 $61.42 billion more or less….thats from june of 2011..

its nothing compared to the 15 trillion dollar debt of the u.s.

Bhabylyn27 January 2, 2012 at 04:17

put some date about the status of philippine debt

Anonymous December 12, 2011 at 03:37

At the rate we are going, we will never be able to pay that. In fact, in 2004 Arroyo was going to declare us in default and go th e way of Argentina who did that in the 80s. She was also going to pay it off with loans from the People’s Republic of China. We will in turn be indebted to China. Nifty. The SC also denied Ninoy’s Truth Commission to investigate the NBN ZTE deal because that was what it was all about. This is treason. But nobody really wants a revolution so they just keep it under wraps. For a while, until this whole thing blows in their faces because the debts gets bigger and there is really no way of paying it off except by defaulting on it. Then the history of nations who defaulted shows governments falling.

Anonymous December 12, 2011 at 03:37

At the rate we are going, we will never be able to pay that. In fact, in 2004 Arroyo was going to declare us in default and go th e way of Argentina who did that in the 80s. She was also going to pay it off with loans from the People’s Republic of China. We will in turn be indebted to China. Nifty. The SC also denied Ninoy’s Truth Commission to investigate the NBN ZTE deal because that was what it was all about. This is treason. But nobody really wants a revolution so they just keep it under wraps. For a while, until this whole thing blows in their faces because the debts gets bigger and there is really no way of paying it off except by defaulting on it. Then the history of nations who defaulted shows governments falling.

konigstiger October 16, 2011 at 02:31

if we will not do something about it!!there will be no way we can pay that!! the politicans are the problem

Azures03 September 28, 2011 at 04:45

…will you put some data here about current foreign debt of Philipppines.??..tnx… :)

arnel August 17, 2010 at 09:40

i know Philippines can overcome it!!

ReyViL.28 September 28, 2011 at 04:44

..yeah..u are perfectly right.!!…i hope that we can overcome onto it…i believe in god…. :)

>gLory.o3

edz pacaña August 6, 2010 at 10:26

this is really a big help…tnx a lot i will have my report tomorrow..

sarah kristine August 5, 2010 at 11:17

thank you for the information it helps me a lot. and because of this i recognize how the Philippines is going on. thanks a lot

Allen Taylor July 4, 2010 at 10:45

Nice writing. You are on my RSS reader now so I can read more from you down the road.

Allen Taylor

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