A Bigger Problem
by: Shiela Coderis
Philippines’ total foreign debt can be so alarming knowing the fact that in consumed almost 75% of the Philippine Budget of last year’s GAA (General Appropriation Act.). As of now,
Philippines’ foreign debt amounted to $54.8 billion at the end – December, 4.44% lower from $57.4 billion year ago and by 1.37% from $55.6 billion at the end- September, which consist mostly of the public section accounts. (BSP, Bangko Sentral ng Pilipinas).
This foreign- dominated Philippine bonds brought by Philippine residents become more of domestic rather than a foreign debt. Public sector borrowings have matured in 20 years on average, compared with 11 years from the private sector’s borrowings which amounted to $37.9 billion while private sector borrowings amounted to $16.9 billion, of which about 1/5 were banks loans. It’s probably obvious that with these records, debt service in the Philippines really consumed the most part of the budget of the
Philippines. These debts actually are increasing as years pass by. We are continually acquiring debts but are failing to pay the principal debts instead were only paying for the interest that are also increasing yearly. So how can we possibly pay these debts if it’s getting higher and higher every year? How can we pay, if even those innocent babies, who are still in the wombs of their mothers, have already the burden of these foreign debts? I certainly believe that solving problems don’t necessarily mean that you must strike to it directly .Sometimes it is really much better that you fix first the factors that could actually eradicate the burden. To make that clearer, I still believe that we have to allocate the government’s funds to other sector bigger than the payment of these foreign debts. The funds that we can allocate to other services will actually make the status quo much better as it is. It’s like having a “domino effect” right?
BPS Politics 
don emmnanuel nolasco Said:
on November 16, 2006 at 5:49 pm
Foreign debt Servicing is one of tne highest priority of our annual budget, thus making a GREAT EFFECT ON THE BASIC SERVICES that the government should deliver to the people. Education is one of those basic services that the government is litle by litle abandoning, allocating small budget to SUCs and DEPED is a great manifestation of this abandonment. Thus a meager budget produces poor quality of education espcially in tertiary education, lacks of classroom, computers, facilities that greatly influences the quality of graduates we produced annually. Aside from education, basic services such as health, housing, transponstattion is being gambled in return to the interest of our foreign debt.
Shiela failed to be more specific in her article but it is a job well done.
Vanessa Karen Fajardo Said:
on November 16, 2006 at 6:09 pm
The number one question to this issue is that “Does the Philippine economy is growing? Backward or forward?”
Debts are use for our country to have funds in order to build infrastratures, to have programs etc. for our development. The government do the modulation of the funds but was the fund were divide equally? Or does the fund were in the hands of the MINERS and use the fund for personal reason?
I don’t see an improvement of this country, back in the time of Marcos, it’s just the same. We are still in the swamp cabbage up to now!
The answer to the question “How can we pay our foreign debts?” is base on performance of our economy. If the economy is going good so far, then we can stand up on the place where debt is no longer present and the people were no longer carry a big, big burden.
raymund b babaran Said:
on November 16, 2006 at 6:24 pm
the problem is how will the government will allocate its annually budget. the effect will be shouldered by the people of the republic. the basic needs of the peolpe will surely be minimized..ang pagtutuunan kasi ng pansin ngaun ay ang mga utang ng bansa..isang napakalaking problema talaga nito sa pilipinas..at isa pa,,tanong lang,,uunlad pa kaya ang pilipinas sa laki ng utang nito?
hahahahahahahahahahaha!!!!!!!!!!!
jay-r lumbo Said:
on November 16, 2006 at 6:37 pm
i agree with the comment of ir babaran…
hindi tayo sure kung talaga ngang mababayaran natin ang napakalaking utang
ng pilipinas. biro bawat isa sa atin ay kasama may utang na 30o something nakalimutan ko na kung million thousand or billion… sa kakaunting kinikta ng mga pilipino at ng ating gobyerno… it would be impossible for us to pay our debts.. napakalaking problema nga… hay.. nakakalungkot naman..
Antalan, Carlo Mayo P. Said:
on November 16, 2006 at 8:21 pm
we could not solely blame the government for allocating great fund for our foreign debt. we cry and shout for a better living, so the government has to borrow. if we only know how to spend every peso on our hands properly, then the debt would have not grown to that.
Khem Visca Said:
on November 16, 2006 at 8:30 pm
foreign debt started in the Marcos government. Until now we are spending millions of dollars for its payment. But what really made the debt bigger and bigger?
As what I’ve seen in the General Appropriation Act, the Philippines is allocationg its highest budget in paying the debt yet we only paid the mere interest. How much more if we’re paying all of it? I bet the Philippines will become the poorest of the poor…..
MAYAMAN ANG PILIPINAS PERO NAGHIHIRAP ANG SAMBAYANANG PILIPINO!
thanks She’ for bringing back the topic in the minds of PUPians esp.to us…
Kris John Said:
on November 16, 2006 at 8:55 pm
Recently the World Bank announced that the Philippines from being negative to its economic performance is now recovering and now in a stable status quo. One of the main reasons is it’s capability in in paying it’s debts. But is this good enough?….
i don’t think so…
i agree with Don that the government should give stress to the basic services needed by it’s people and one is education…
the government has really been performing weak when it comes to it’s support to education, education for the people of the future, education that in my own claim will lead the Philippines in a much ideal society.
king jhan lascano Said:
on November 16, 2006 at 8:58 pm
we must bear in mind that this debts are the services offered by the government.
hindi masamang umutang, ang masama e hindi tayo magbayad, i,m sure kaya pa nating bayaran yan basta magawa ng gobyerno ang mga dapat gawin, nasa pamahalaan nakasalalay lahat
Jesus Kristian King P. Calugay Said:
on November 16, 2006 at 9:21 pm
one of our government’s duty is place the whole economy and societies’ of filipinos to a better position. uplifting the economy’s current state isn’t easy. specially the great queastion of an average student is also the big problem of the government…”saan ako kukuha ng pangastos?”
we are in a desert now and the first rule is to survive. the government must under take any measures to risen this country from the grave without any increase of dier consiquences.
allocation of budget is not just what hinders us but also the pesky flies which called graft and corruption. the government cant also ignore the increasing debt of the Philippines neithier the need of the Filipinos.
were in a contract, and all debts should be all paid off. there’s no escaping it. its up to us and the government to figure out to eliminate this obstacle.
dana evangelista Said:
on November 17, 2006 at 2:09 pm
hay naku… debt is not a bigger problem. instead it is the biggest problem. interests are so high.
the government should allocate WISELY its budget. and develop intelligently our patrimony. dahil sa totoo lang, mayaman naman talaga tayo eh.
however, it’s not the government’s sole responsibility to solve the debt issue. we all have responsibilities. we should pay our taxes on time which a great portion was given to the debt problems of the country.
Lucero, Josephine C. Said:
on November 17, 2006 at 2:42 pm
After i read the wrtings of Ms. Coderis, I come up with this findings that for a long time of my life I became blind with the unfeasible reality of our so huge amount of debt. And again, my knowledge about the foreign debt of the country become much wider and clearer.
But actually, after i read this I also feel unsurprised because I’m expecting this before. I’m already kinda wawre with the debt of the country but not that knowledgeable and I’m so hopeless with the given reality that it will also be impossible to pay that so huge amount that became much bigger every year.
She’s also realistic and sensitive with the situation of the country’s foreign debt. Good in structuring paragraph and obviously exerted lots of effort to finished this very sensible essay. She researh much on this topic and although its kinda short to eplain clearly the foreign debt of the country I found it so impormative.
melanie aldeon Said:
on November 17, 2006 at 3:50 pm
debts..debts.. im tired of hearing this word!
darn, klan b ito mwwla?! kc nmn ung mga officials, nangungutang nga pero d nmn tlga nla gngmt s tmang paraan, ibinubulsa pa!
mga corrupt tlga..kng d mbbgo ang mga taong namumuno, d tayo mttpos s pgbbyd ng utang!
but, i dnt lose hope for our country. eventually mbbyrn dn ntn un lahat!hehe
let’s just work as one..
out of many, one people sna!!!
Katigbak, Karla Elaine L. Said:
on November 17, 2006 at 4:54 pm
DEbts? this is where most of the budget of our government is being spent.
I think It will take a long time for us to pay that debt because first, higher ang higher interest
Second, budget of the government are not properly allocated..
and lastly, Our government officials are corrupt…
I hope that people and government will work as one to solve this problem.
joyce 'jucee' victorino Said:
on November 17, 2006 at 5:54 pm
‘INFORMATIVE’
salome saro Said:
on November 17, 2006 at 6:09 pm
is it debt ???? hahaha
i think it is the problem that even a filipino not yet born is enduring…
that’s why as an individual i really hate debting, hehe that is why even my mama finds hard to have my money temporarily….
hehehe!!!!!!!!!!!!!!
but what can i do… as a filipino.. i like it or not.. i do have it!!! huhuhu!!!!!!!!!!!!!
Kristine Joie Salazar Said:
on November 17, 2006 at 6:34 pm
It’s very obvious that as A filipino citizen, we must be aware of the status of our country
most specifically with regards to our foreign debts.
U have showed us the progress or mere fact that our foreign debts become higher and hgher as
time passes by. But basically, I want a deeper artcle on this topic.
For example, what are the plans of the governement to actually erradicate the burdens of the
filipinos, the unwanted, ballooning DEBT.. What will be the actions of our governement
officials to solve this particular problem or of course as an individual and as a concerned
citizen, how can we possibly help the government to solve the issue?
Jan Richard A. Renes Said:
on November 17, 2006 at 6:52 pm
very good observation she…
the article is really informative and straight to the point…
lea baluyot Said:
on November 17, 2006 at 6:57 pm
What you gave us is a sad reality of our country. That problem has been debated and argued by so many economists years and decades ago. And your right, until now it is still our problem. Many had proposed how to solved it but still they failed. I was glad to know that most of our budget goes to debts of private sectors and banks. On my opinion these debts should be given to our farmers who need more the financial support of our goverment to help boost up our economy.
Ma. Shiela H. Garcia Said:
on November 17, 2006 at 7:05 pm
debt is really a big problem of our country,, it’s really obvious na baon na sa utang ang Pilipinas,, but we should not always put the blame in the government..kasi aminin na natin na nakinabang rin tayo sa utang ng gobyerno,,wat we should do is to be responsible citizens in paying our taxes.. in that way, we could help the country to lessen our debts..
kaya lang sa sobrang laki ng utang natin eh baka mamamatay na tayo’t lahat e may utang pa rin??eh pa’no baon na nga tayo sa utang tapos corrupt pa yung ibang mga gov’t officials.. tsk..tsk.. panu tayo uunlad nyan??
Charmaine Aguila Said:
on November 17, 2006 at 7:25 pm
I agree with Mr. Lascano (about his statement ‘hindi masamang umutang ang masama ay hindi tayo magbayad’) simply because we can’t really avoid having debts….
and i think our government is doing its job naman….narinig nio na ba ung news na….’The national government and the Bangko Sentral ng Pilipinas is prepaying more loans to REDUCE the country’s debts.’
…i think sa ngayon it would be very impossible for us t o be free of debts,,, what we should consider muna eh how we are going to ‘reduce’ debts…
Brigette Servino Said:
on November 17, 2006 at 8:57 pm
DEBT??? Naku, sino bang walang utang?
Pati mga kaapuapuhan natin, wala pa man din sa mundo, ni sa plano ng mga magiging magulang nila, may utang ng babayaran,saan ka pa? Npakasalimuot pagusapan ng utng but I agree kay Carlo tha we can never blame our government sa pag-utang, kailangan lang ng matalinong paggamit na talagang mararamdaman ang sinasabing pagbabago.
jezza f. blastique Said:
on November 17, 2006 at 9:48 pm
– All i can comment on this is we must file a state of bankruptcy. Can’t suggest anything. the officials must allocate wisely the nation’s wealth and of course, stop corruption. But that crime is, i think, already part of politicians’ life. whew! Well, i’m sure the country’s open to much better suggestions to this problem. Wala kasing kwenta ung suggestion ko eh..
– Ce’! Yoohoo!! Galing!! Success!! Luv U!!
Gerald Magno Said:
on November 18, 2006 at 9:09 pm
$54,800,000,000.00 or roughly P2,740,000.000,000.00 is the current amount of Philippines’ foreign debt. A very very large amount of money! If the present population of the country is 86 million Filipinos, each of us should pay P31,860.00 for the National Government to pay our debt. Sounds very impossible.
Let’s take a look on the grassroot of Philippines’ foreign debt. After the World War II, during the 1950s, the country is facing a big problem. The Philippines is heavily destructed, the problem is how will the government solve these witout sufficient funds. The newly founded World Bank offers a deal that they will let the Philippines to borrow money in the condition that the National Government will pay the debt yearly with interest. As time goes by, the country’s population increased yearly, which also means abigger social services needed by the people. The government continues to acquire foregn debt service.
Base on these facts, the government is acquiring foreign debt for the social services of its people. In short, that borrowed amount is for us, Filipinos. But as an ordinary citizen, how can me help trhe National Government in paying taxes? In just simple way, pay the taxes responsibly, for the government to collect enough funds wherein our paym ent for foregn debt will come from. Although its a very large amount, littla by little!
katie rosales Said:
on November 18, 2006 at 10:18 pm
when can we actually pay the debt?how?
any idea clasmate? bk nmn c eddie gil ang mkpgbyd ng utang ng pilipinas, mgigin swindler xa ng mga kno..nyahahahaha!
wel, seriously,guys we need a genious leader and a wealthy person that at least could lessen the burden of the state..cguro, i guess it would take a couple of decades before we actually have a zero balance in world bank..
sa ngaun the scenario is vague but then i still hope as an optimistic person dat we can solve this problem
cross finger guys!
Gerald "Lezard Valehe" Mesina Said:
on November 19, 2006 at 7:30 pm
The foreign debt of our country is a poison that gradually spreads and kills the country. It is very contagious and it is also inherited and the great pain is that this perturb us from progress and development.
(pasenxa na sa ispelling eh baka malai mali)
It shall be engrave upon your soul
2nel_sanchez Said:
on November 29, 2006 at 5:00 pm
DEBT???eto ata ang issue n kahit saan u magtungo eh nakakapit na saten….nice article….grabeh…sobrang laki na ng utang ng philippines…you right we should allocate the budget to other services n mas nangangailangn ng pondo…esp. sa public services…! ge..god bless!(“,)
jay-r lumbo(****) Said:
on February 2, 2007 at 8:08 pm
duuugoooo…. may numbers!!!!! hindi ako makarelate!!!! hindi ko siya magetz… pero aus ang iyong article..
mahusay…
Irene Said:
on March 17, 2007 at 3:59 pm
sorry mama she ngayon lang me nagcomment . Just take a look at Argentina’s experience. Now you know the problem would you consider the idea of debt default?
shorhaydah Said:
on August 6, 2008 at 12:40 pm
daug mo! it’s nice………..