Understanding the Debt of the Philippines
Do you have debt? I believe most of people have liability or had been in debt before. If you’re in debt, I think it is your responsibility to pay for it faithfully.
After all the Philippine administration has debt because of budget deficit, the government needs to obtain money from national or foreign financial company to provide for its projects and financial needs.
Outside debt or offshore debt is that part of the total debt of a nation that is payable to creditors outward the country. The borrowers can be the government, companies or private banks and financial institution.
The debt includes money payable to private financial banks, other governments, or international financial organizations such as the IMF and World Bank.
National debt, on the contrary, is that portion of the whole debt of a nation that is owed to lenders inside the country or this is domestic debt.
In the Philippines, we have both national and external debt. In the latest information available, the national debt of Philippines is greater than its offshore debt. This internal debt is payable to private banks and other financial company based in the Philippines.
According to Bureau of Treasury of the Philippine government, the offshore debt or foreign of debt of the Philippines reached P 1,926,599,000,0000 (1.93 trillion Pesos) as of year 2009. While the internal or domestic debt reached to P2,470,040,000,000 (2.47 trillion Pesos) as of 2009. In total, the Philippines has a combined debt of P4,396,639,000,000 (4.40 trillion Pesos).
In your opinion, how the Philippine government can pay its debt? What are the ways we can do to be debt-free in the future.
Gily Tenorio likes writing on finance, mutual funds and investing. Some of his posts include financial literacy and about Philippine Debt, you can visit Financial Management , for free financial literacy articles on saving, investments and make money online.
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