Contact Details

Rm. N-411, House of Representatives, Quezon City, Metro Manila, Philippines
+63 2 931 5497, +63 2 931 5001 local 7370

The continuing appreciation of peso against the US dollar will generate savings in debt service interest payments

Press Statements

 

             The continuing appreciation of the peso to the US dollar, which is expected to level at no less than P42:$1 at yearend, will generate P12.855 billion in savings in debt service interest payments.

 This would enable the House of Representatives to cut debt service by P12.8 billion and realign the liberated amount to education, health and infrastructure.

 The impact on debt service interest payments is P2.571 billion for every peso appreciation.

 The assumption of the peso-US dollar exchange rate is P45-47 to a dollar in the preparation of the National Expenditure Program for 2011.

 If the peso appreciates to P42:$1, then at the high end the net savings in interest payment would be P12.855 billion.

 The House should not be cowed by the Executive from slashing the interest payment for debt service because the reduction is justified and the realignment is imperative.

 The Congress should not be timid in exercising its constitutionally mandated power of the purse.