BUSINESS Gov’t debt soars to all-time high of P13.7t

By Julito G. Rada

THE government’s outstanding debt ballooned to an all-time high of P13.70 trillion as of end-January this year from P13.42 trillion in December 2022 as the government borrowed more money to finance the budget deficit, the Bureau of the Treasury said Tuesday.

From end-December 2022, NG’s total outstanding debt increased by P279.63 billion or 2.1 percent due to the net availment of domestic and external debt,” the Treasury said in a statement.

It also jumped by P1.67 trillion, or 13.9 percent, from P12.03 trillion regis-

In Brief

DOTr woos Italian trade mission to invest in PH

THE chief of the Department of Transportation on Tuesday enticed Italian businessmen to invest in big transport projects that make the country a profitable investment hub and promising gateway to the Asian region.

Transportation Secretary Jaime Bautista pitched several big-ticket infrastructure projects where Italian businessmen could commit their investments and resources. He asked the Italian delegation to discover the vast transport infrastructure potential in the Philippines.

“This trade mission comes when the Philippines is positioning itself as a lucrative investment destination and an auspicious gateway to Asia,” said Bautista during the Italian Trade Mission in Manila. Bautista said the trade mission reopens rich opportunities, not just for businesses, but also investment prospects for transportation infrastructure projects while enhancing connectivity and mobility that would hasten and boost economic growth.

“A lot of airport, railway, seaport, and road infrastructure projects have been initiated and we are on track to complete them within the coming years,” Bautista told the delegation.

Darwin G. Amojelar

BOI approves P980-m canned sardines facility

THE Board of Investments approved the P980-million zero-waste sardines manufacturing facility of Mega Prime Food Inc. in Sto. Tomas Batangas in support of the government’s directive for food security that will allow Filipinos access to affordable and nutritious food options.

Mega Sardines dominates the local canned sardines market with a 26-percent share. The new facility is designed to boost output by 20 percent to address increasing demand in Luzon, which accounts for 80 percent of total demand.

“This innovation by Mega Prime Foods Inc. supports the government’s overall direction to host clean and sustainable manufacturing practices in the country. The project is also expected to generate more business and employment opportunities for Filipinos, especially those situated in the Southern Tagalog area,” said Trade Secretary and BOI chairman Alfredo Pascual.

The facility is a state-of-the-art semi-automated sardines canning manufacturing plant with a zero-waste fish meal facility, cold storage and warehouse. The whole plant will operate using an energy-efficient power source to minimize carbon emissions.

Othel V. Campos

NPC signs MOU for RE projects in SPUG areas

STATE-OWNED National Power Corp. said Tuesday it signed a memorandum of understanding with APTI Renewable Energy Corp. to promote and identify priorities for biofuel and bio-mass hybrid power projects in the Small Power Utilities Group areas.

APTI REC is a subsidiary of Asian Pyrochem Technologies Inc., an authorized export and import channel of Indonesia and the Philippines under a government-to-government energy program through PT PP Persero TBK and state-owned Philippine National Oil Co. NPC president and chief executive Fernando Martin Roxas said the MOU, signed on Monday, is part of the corporation’s sustainability agenda and gradually minimizes dependence on fossil fuels.

“The MOU will allow us to access APTI REC’s technology on the use of biofuel or palm oil as an alternative fuel. Together, we shall also collaborate to build a prototype bioenergy renewable energy power plant that uses palm oil and develop an integrated logistical and technical system for the production of biofuel and biomass,” Roxas said.

APTI REC president and chief executive Harley Luis Leaño expressed his enthusiasm for the partnership. “We are happy to share our knowledge and experiences and to have found an ally in championing renewable energy in Napocor. This partnership will not only pursue energy development but will also help alleviate poverty in the countryside,” said Leaño. Alena Mae S. Flores tered in January 2022. The government incurred a budget deficit of P1.6 trillion in 2022, representing 7.3 percent of the gross domestic product.

Data showed that of the total debt stock, 31.5 percent came from other countries and 68.5 percent represented domestic borrowings.

Domestic debt rose 1.9 percent to P9.38 trillion in January from the end-December 2022 level following the net availment of domestic financing amounting to P179.16 billion, which offset the P2.61-billion effect of local currency appreciation against the US dollar on foreign denominated onshore securities.

Domestic debt also went up by more than P1 trillion, or 1.2 percent, from P8.37 trillion a year earlier.

Foreign debt amounted to P4.31 trillion in January, P103.08 billion or 2.4 percent higher from the previous month.

It also jumped by P651 billion, or 17.8 percent, from P3.66 trillion a year ago.

“The increase in NG’s external obligation for January was brought on by the P186.56 billion net availment of foreign loans and P10.36 billion impact of third-currency adjustments against the US dollar. However, peso appreciation reduced the peso value of foreign currency denominated debt by P93.84 billion,” the Treasury said.

Michael Ricafort, chief economist of Rizal Commercial Banking Corp., said the higher government borrowings in January resumed after the seasonal lull during the holidays in December.

“For the coming months, new record high for the outstanding national government in peso terms is still possible, in view of the recent peso RTB issuance in February 2023 and the upcoming US dollar-denominated ROP bond issuance in 2Q 2023,” Ricafort said. Total national government guaranteed obligations decreased by P5.21 billion or 1.3 percent month-on-month to P393.84 billion as of end-January 2023.

The Treasury said the lower level of guaranteed debt was due to the net repayment of both domestic and external guarantees amounting to P1.12 billion and P0.21 billion, respectively. The peso appreciation against the US dollar trimmed the amount by P4.31 billion, which more than offset the net appreciation of thirdcurrency denominated guarantees against the greenback amounting P0.42 billion.