BSP upgrades debt management system

THE BANGKO SENTRAL ng Pilipinas (BSP) has enhanced its external debt monitoring and analysis by shifting to the latest version of the Debt Management and Financial Analysis System (DMFAS). “The DMFAS 6 has strengthened security to ensure data integrity and confidentiality and an enhanced user experience and navigation. It also offers enhanced analytical and managerial […]

Gov’t debt hits record P12.03T

The National Government’s outstanding debt hit a record P12.03 trillion at the end of January after it got another zero-interest loan from the central bank and borrowed locally, according to data from the Treasury bureau.  The end-January debt level rose by 16.5% from a year earlier and by 2.6% from December.  About 70% of the […]

Fitch cites potential credit rating cut

By Jenina P. Ibañez, Senior Reporter  Rising public debt could lead to a credit rating downgrade for the Philippines in the next few years, Fitch Ratings said.  The rating company would consider the country’s public debt-to-gross domestic product (GDP) ratio in the medium term, especially as finances in the Asia Pacific improve, it said in a note on Friday.  […]

BSP sells P100 billion in 28-day debt

The Philippine central bank raised P100 billion through short-term securities it auctioned off on Friday, as rates dropped after the government finished its dollar bond sale.  The Bangko Sentral ng Pilipinas (BSP) fully awarded the 28-day bills it offered from total bids worth P158.2 billion, making the offer nearly two times oversubscribed.  The demand was 17% higher than P135.74 billion in total tenders last week.  The short-term debt fetched an average rate of 1.812% from 1.816% at the previous auction.  Investors sought rates from 1.78% and 1.824%, lower than last week’s 1.8-1.835%.  The rates corrected on Friday after rising for four straight weeks, Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp. said in a Viber message.  He said players had factored in the recent offshore bond issuance by the government, where it sold $3 billion via its dual-tranche offering of dollar-denominated bonds.  This meant there is less pressure for the government to raise more funds locally for the meantime to finance the budget deficit, he added.  The Philippines sold $2.25 billion via 25-year dollar bonds on Tuesday and $750 million in 10.5-year notes.  This marked the country’s third offshore bond offering this year, after the $2.5 billion worth of euro-denominated notes it sold in April and $500 million yen-denominated Samurai bonds issued in March.  The government is planning to raise $7 billion from the international debt market this year to help fund its budget deficit that is expected to widen to 9.3% of economic output.  Mr. Ricafort said the higher demand showed there is excess liquidity in the financial system. — Beatrice M. Laforga 

Q1 external debt declines

The country’s outstanding foreign debt fell by 1.5% or $1.4 billion to $97 billion at the end of March from end-December, after the National Government redeemed maturing bonds and local banks settled their obligations, according to the Philippine central bank. Year-on-year, the country’s debt stock rose by $15.6 billion after borrowings worth $13.5 billion by […]

DoJ cybercrime group warns vs online lending firms’ unlawful debt collection practices

THE JUSTICE department’s cybercrime team has flagged the unlawful debt collection practices of online lending companies, citing the growing number of reports it has received. In a public advisory on Monday, the Department of Justice–Office of Cybercrime (DoJ-OOC) said various laws prohibit these online firms from accessing the debtor’s phone contacts, posting their personal information, […]