President Rodrigo Duterte will leave a record debt of 13. 7 billion pesos when he resigns in 2022, raising the debt-to-GDP ratio to its highest point in 17 years, as the government borrows more in the short term to fight COVID-19 and revive. economy.
Domínguez said that the maximum debt would come from local resources: 74% of the total this year, 85% in 2021 and 80% in 2022, and the national monetary formula will be flooded with liquidity.
The debt/GDP ratio, or gross domestic product, which reflects the ability to pay, will increase to 53. 9% by the end of this year, 58. 1% in 2021 and 59. 9% by 2022, at the end of Duterte’s six years. one-year term, according to Dominguez.
This means that by 2022, the debt-to-GDP ratio will peak at 17 years, the rate from 65. 7% in 2005.
These increases in the debt-to-GDP ratio over the next 3 years will offset the slow decline over the last decade to reach a record 39. 6% in 2019.
With an estimated nominal GDP of 22. 35 billion pesos to 23. 29 billion pesos by 2022, outstanding debt would be between 13. 39 billion pesos and 13. 95 billion pesos.
Asked through the Inquirer on Friday if those calculations were for government projections, the Rosalía V National Treasurer. Leon replied that remarkable debt would be in that range, or about 13. 7 trillion pesos.
Dominguez, however, said projected debt-to-GDP ratios from 2020 to 2022 were “still below the country’s record debt point, 71. 6% of GDP in 2004. “
Domínguez said that of the total loans, $ 5. 98 billion represents “budget financing” from those sources:
He said at least $2. 35 billion of global bond offers had been raised that “got our lowest coupon ever registered in the U. S. market. “
At least $496. 36 million was grants and loans “from our progression partners for specific COVID-19 projects. “
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