RP debt increases to record high

RP debt increases to record high

MANILAL: Philippine central government debt in September rose 2.8
percent from a month earlier to a record US$66 billion as
President Gloria Arroyo's administration continues to spend
beyond its means.

Domestic debt, which accounts for 53 percent of the total,
rose 18 percent to 1.96 trillion pesos ($35 billion), the
Department of Finance said. Foreign debt rose 15 percent to 1.77
trillion pesos. The Philippines, which has been running budget
deficits since 1998, spends about a third of its revenue paying
interest on the national debt.

Standard & Poor's and two others ratings companies have
threatened to downgrade the nation's junk debt rating if the tax
package isnFt passed. Lower ratings may increase borrowing costs
because investors who perceive higher risk will demand higher
yields. -- Bloomberg