Knowing the Borrowings of the Philippines

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Do you have liability? I believe most of people have debt or had been in debt in the past. If you’re in debt, I believe it is your responsibility to pay for it regularly.

After all the Philippine administration has debt because of funds deficit, the government needs to borrow money from national or offshore financial institution to support its programs and financial requirements.

Outside debt or offshore debt is that part of the whole debt of a nation that is payable to creditors outside the country. The borrowers can be the government, corporations or private banks and financial organization.

The debt includes money payable to private commercial banks, other governments, or international financial organizations such as the IMF and World Bank.
Internal debt, on the other hand, is that part of the whole debt of a nation that is owed to lenders inside the country or this is national debt.

In the Philippines, we have both national and external debt. In the latest data at hand, the internal debt of Philippines is higher than its offshore debt. This internal debt is payable to private banks and other financial company located in the Philippines.

As stated in Bureau of Treasury of the Philippine government, the external 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 collective debt of P4,396,639,000,000 (4.40 trillion Pesos).

In your opinion, how the Philippine administration can pay its debt? What are the ways we can do to be debt-free in the future.

Bert Tenorio loves blogging on finance, mutual funds and investing. Some of his articles include financial literacy and about Philippine Debt, you can visit Financial Management , for helpful financial management articles on saving, investments and earn money online.

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