Obligation Filipinas 3.7% ( US718286CA32 ) en USD

Filipinas

100 % ▲

Philippines

US718286CA32 ( en USD )

3.7% par an ( paiement semestriel )

28/02/2041

Prospectus brochure de l'obligation Philippines US718286CA32 en USD 3.7%, échéance 28/02/2041

200 000 USD

2 000 000 000 USD

718286CA3

01/03/2026 ( Demain )

Les Philippines sont un archipel de plus de 7 000 îles situées en Asie du Sud-Est, connues pour leur biodiversité, leur culture riche et leur histoire coloniale complexe.

L'Obligation émise par Filipinas ( Philippines ) , en USD, avec le code ISIN US718286CA32, paye un coupon de 3.7% par an.
Le paiement des coupons est semestriel et la maturité de l'Obligation est le 28/02/2041

PROSPECTUS SUPPLEMENT TO PROSPECTUS DATED FEBRUARY 11, 2016
US$2,000,000,000
Republic of the Philippines
3.70% Global Bonds due 2041
The Republic of the Philippines (the "Republic") will pay interest on the global bonds on March 1 and
September 1 in each year. The first interest payment on the global bonds will be made on September 1, 2016 in
respect of the period from (and including) March 1, 2016 to (but excluding) September 1, 2016. The Republic
may not redeem the global bonds prior to their maturity. The global bonds will mature at par on March 1, 2041.
The global bonds will be designated Collective Action Securities, and, as such, will contain provisions regarding
certain aspects of default, acceleration, voting on amendments, modifications, changes, waivers and future issues of
global bonds that differ from those applicable to most of the Republic's outstanding External Public Indebtedness (as
defined in the accompanying prospectus dated February 11, 2016). Under these provisions, which are described in the
section entitled "Collective Action Securities" on page 140 of the accompanying prospectus, the Republic may, among
other things, amend the payment provisions of the global bonds and certain other material terms with the consent of the
holders of not less than 75% of the aggregate principal amount of the outstanding global bonds.
The offering of the global bonds is conditional on the receipt of certain approvals of the Monetary Board of the
Bangko Sentral ng Pilipinas, the central bank of the Republic.
The global bonds are being offered globally for sale in the jurisdictions where it is lawful to make such offers and sales.
Application has been made to admit the global bonds to listing on the Official List of the Luxembourg Stock Exchange
and to trading on the Euro MTF Market ("Euro MTF"). We cannot guarantee that the application to the Luxembourg
Stock Exchange will be approved, and settlement of the global bonds is not conditional on obtaining the listing.
We expect to deliver the global bonds to investors in registered book-entry form only through the facilities of
The Depository Trust Company ("DTC"), Clearstream Banking, S.A. ("Clearstream, Luxembourg"), and
Euroclear Bank, S.A./N.V. ("Euroclear" or the "Euroclear System"), on or about March 1, 2016.
Per Bond
Total
Price to investors . . . . . . . . . . . . . . . . . . . . . . . . .
100%
US$2,000,000,000
Underwriting discounts and commissions . . . . . .
0.05%
US$
1,000,000
Proceeds, before expenses, to the Republic . . . . .
99.95%
US$1,999,000,000
Neither the Securities and Exchange Commission nor any other regulatory body has approved or
disapproved of these securities or determined if this prospectus supplement or the accompanying
prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
Joint Global Coordinators
Citigroup
Deutsche Bank Securities
HSBC
Standard Chartered Bank
Joint Lead Managers and Joint Bookrunners
Citigroup
Credit
Deutsche Bank
HSBC
J.P. Morgan
Morgan
Standard
UBS
Suisse
Securities
Stanley Chartered Bank
The date of this prospectus supplement is February 17, 2016

[THIS PAGE INTENTIONALLY LEFT BLANK]
S-2

TABLE OF CONTENTS
Prospectus Supplement
Pages
Introductory Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S-4
Summary of the Offering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S-5
Use of Proceeds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S-8
Recent Developments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S-9
Description of the Global Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S-11
Global Clearance and Settlement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S-14
Taxation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S-17
Underwriting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S-20
Conflicts of Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S-21
Legal Matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S-30
General Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S-30
Prospectus
Pages
Certain Defined Terms and Conventions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ii
Forward-Looking Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
iii
Data Dissemination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
iv
Use of Proceeds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
iv
Ratings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
iv
Prospectus Summary Republic of the Philippines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
Government and Politics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
Republic of the Philippines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
History, Land and People . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
Government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8
International Relations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
26
Natural Disasters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
34
Philippine Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
36
GDP and Major Financial Indicators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
44
Principal Sectors of the Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
50
Prices, Employment and Wages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
57
Savings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
64
Balance of Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
64
Monetary System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
95
The Philippine Financial System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
101
The Philippine Securities Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
109
Public Finance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
110
The Government Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
115
Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
117
Description of the Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
128
Description of the Debt Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
128
Description of the Warrants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
137
Limitations on Issuance of Bearer Debt Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
138
Ranking Provisions of the Debt Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
139
Collective Action Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
140
Taxation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
144
Plan of Distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
154
Validity of the Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
156
Authorized Representative in the United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
156
Experts; Official Statements and Documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
156
Further Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
156
Debt Tables of the Republic of the Philippines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
T-1
S-3

You should read this prospectus supplement along with the prospectus that accompanies it. You
should rely only on the information contained or incorporated by reference in this document and the
accompanying prospectus or to which we have referred you. We have not authorized anyone to provide
you with information that is different. This document may only be used where it is legal to sell these
securities. This document and the accompanying prospectus may only be used for the purposes for which
they have been published. The information in this prospectus supplement and the accompanying
prospectus may only be accurate as of the date of this prospectus supplement or the accompanying
prospectus, as applicable. Terms used herein but not otherwise defined shall have the meaning given to
them in the prospectus that accompanies this prospectus supplement.
INTRODUCTORY STATEMENTS
The Republic accepts responsibility for the information that is contained in this prospectus supplement and
the prospectus that accompanies it. To the best of the knowledge and belief of the Republic (which has taken all
reasonable care to ensure that such is the case), the information contained in this prospectus supplement and the
accompanying prospectus is in accordance with the facts and does not omit anything likely to affect the import of
such information.
The Republic is a foreign sovereign state. Consequently, it may be difficult for you to obtain or realize upon
judgments of courts in the United States against the Republic. See "Description of the Securities--Description of
the Debt Securities--Jurisdiction and Enforceability" in the accompanying prospectus.
The distribution of this prospectus supplement and the accompanying prospectus and the offering of the
global bonds may be legally restricted in some countries. If you wish to distribute this prospectus supplement or
the accompanying prospectus, you should observe any applicable restrictions. This prospectus supplement and
the accompanying prospectus should not be considered an offer, and it is prohibited to use them to make an offer,
in any state or country in which the making of the offering of the global bonds is prohibited. For a description of
some restrictions on the offering and sale of the global bonds and the distribution of this prospectus supplement
and the accompanying prospectus, see "Underwriting" on page S-20.
This document is only being distributed to and is only directed at (i) persons who are outside the United
Kingdom and (ii) to investment professionals falling within Article 19(5) of the Financial Services and Markets
Act 2000 (Financial Promotion) Order 2005 (the "Order") or (iii) high net worth entities, and other persons to
whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons
together being referred to as "relevant persons"). The global bonds are only available to, and any invitation, offer
or agreement to subscribe, purchase or otherwise acquire such global bonds will be engaged in only with,
relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its
contents.
All references in this prospectus supplement (a) to the "Republic" or the "Philippines" are to the Republic of
the Philippines, (b) to the "Government" are to the national government of the Philippines and (c) to "Bangko
Sentral" or "BSP" are to Bangko Sentral ng Pilipinas, the central bank of the Philippines.
Unless otherwise indicated, all references in this prospectus supplement to "P" are to the lawful national
currency of the Philippines, those to "dollars," "U.S. dollars," "US$" or "$" are to the lawful currency of the
United States of America.
S-4

SUMMARY OF THE OFFERING
This summary highlights information contained elsewhere in this prospectus supplement and the
accompanying prospectus. You should read the entire prospectus supplement and the accompanying prospectus
carefully.
Issuer . . . . . . . . . . . . . . . . . . . . . . . . . . . Republic of the Philippines.
Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . US$2,000,000,000 3.70% Global Bonds due 2041.
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . The global bonds will bear interest at 3.70% from March 1, 2016,
payable semi-annually in arrears.
Issue Date . . . . . . . . . . . . . . . . . . . . . . . . March 1, 2016.
Interest Payment Dates . . . . . . . . . . . . . March 1 and September 1 of each year, payable to the persons who
are registered holders thereof at the close of business on the preceding
February 24 or August 27, as applicable, whether or not a business
day. The first interest payment will be made on September 1, 2016 in
respect of the period from (and including) March 1, 2016 to (but
excluding) September 1, 2016.
Maturity Date . . . . . . . . . . . . . . . . . . . . March 1, 2041.
Issuer Redemption . . . . . . . . . . . . . . . . . The Republic may not redeem the global bonds prior to maturity.
Status of Bonds . . . . . . . . . . . . . . . . . . . The global bonds will be direct, unconditional, unsecured and general
obligations of the Republic. Except as otherwise described, the global
bonds will at all times rank at least equally among themselves and
with all other unsecured and unsubordinated External Indebtedness
(as defined in the accompanying prospectus) of the Republic. The full
faith and credit of the Republic will be pledged for the due and
punctual payment of all principal and interest on the global bonds.
See "Description of the Securities--Description of the Debt
Securities--Status of Bonds" in the accompanying prospectus.
Negative Pledge . . . . . . . . . . . . . . . . . . . With certain exceptions, the Republic has agreed that it will not create
or permit to subsist any Lien (as defined in the accompanying
prospectus) on its revenues or assets to secure External Public
Indebtedness (as defined in the accompanying prospectus) of the
Republic, unless at the same time or prior thereto, the global bonds
are secured at least equally and ratably with such External Public
Indebtedness. The international reserves of Bangko Sentral represent
substantially all of the official gross international reserves of the
Republic. Because Bangko Sentral is an independent entity, the
Republic and Bangko Sentral believe that the international reserves
owned by Bangko Sentral are not subject to the negative pledge
covenant in the global bonds and that Bangko Sentral could in the
future incur External Public Indebtedness secured by such reserves
without securing amounts payable under the global bonds. See
"Description of the Securities--Description of the Debt Securities--
Negative Pledge Covenant" in the accompanying prospectus.
S-5

Taxation . . . . . . . . . . . . . . . . . . . . . . . . . The Republic will make all payments of principal and interest in
respect of the global bonds free and clear of, and without withholding
or deducting, any present or future taxes of any nature imposed by or
within the Republic, unless required by law. In that event, the
Republic will pay additional amounts so that the holders of the global
bonds receive the amounts that would have been received by them
had no withholding or deduction been required, subject to certain
exceptions. See "Description of the Securities--Description of the
Debt
Securities--Additional
Amounts"
in
the
accompanying
prospectus.
Collective Action Clauses . . . . . . . . . . . The global bonds will contain provisions regarding default,
acceleration, voting on amendments, modifications, changes, waivers
and future issues of global bonds that differ from those applicable to
most of the Republic's outstanding External Public Indebtedness.
Under these provisions, which are described in the section entitled
"Collective Action Securities" on page 140 of the accompanying
prospectus, the Republic may, among other things, amend the
payment provisions of the global bonds and certain other terms with
the consent of the holders of not less than 75% of the aggregate
principal amount of the outstanding global bonds.
Cross-Defaults . . . . . . . . . . . . . . . . . . . . Events of default with respect to the global bonds include (i) if the
Republic fails to make a payment of principal, premium, prepayment
charge or interest when due on any External Public Indebtedness with
a principal amount equal to or greater than $25,000,000 or its
equivalent, and this failure continues beyond the applicable grace
period; or (ii) if any External Public Indebtedness of the Republic or
the central monetary authority in principal amount equal to or greater
than $25,000,000 is accelerated, other than by optional or mandatory
prepayment or redemption. See "Collective Action Securities--
Events of Default: Cross Default and Cross Acceleration" in the
accompanying prospectus.
Listing . . . . . . . . . . . . . . . . . . . . . . . . . . . The Republic is offering the global bonds for sale in the United States
and elsewhere where such offer and sale is permitted. Application has
been made to admit the global bonds to listing on the Official List of
the Luxembourg Stock Exchange and to trading on the Euro MTF.
The Republic cannot guarantee that the application to the
Luxembourg Stock Exchange will be approved, and settlement of the
global bonds is not conditional on obtaining the listing.
Form, Denomination and
Registration . . . . . . . . . . . . . . . . . . . . The global bonds will be issued in fully registered form in minimum
denominations of $200,000 and integral multiples of $1,000 in excess
thereof. The global bonds will be represented by one or more global
securities registered in the name of a depositary, its nominee or a
custodian. Beneficial interests in the global securities will be shown
on, and the transfer thereof will be effected only through, records
maintained by the depositary and its direct and indirect participants.
Settlement of all secondary market trading activity in the global
S-6

bonds will be made in immediately available funds. See "Description
of the Securities--Description of the Debt Securities--Global
Securities" in the accompanying prospectus.
Further Issues . . . . . . . . . . . . . . . . . . . . The Republic may from time to time, without notice to or the consent
of the registered holders of the global bonds, issue further bonds
which will form a single series with the global bonds. See "Collective
Action Securities--Further Issues of Debt Securities" in the
accompanying prospectus.
Use of Proceeds . . . . . . . . . . . . . . . . . . . The Republic intends to use the net cash proceeds from the sale of the
global bonds to pay the purchase price and accrued interest for the
bonds that it purchases pursuant to its invitation for offers (the
"Invitation for Offers") in respect of certain series of the Republic's
foreign currency-denominated bonds (the "Old Bonds") announced
on February 17, 2016, as well as expenses incurred by the Republic in
that transaction. The Republic may also use any proceeds for general
purposes of the Republic, including budgetary support.
Fiscal Agent . . . . . . . . . . . . . . . . . . . . . . The Bank of New York Mellon (as successor in interest to JPMorgan
Chase Bank, N.A.).
Governing Law . . . . . . . . . . . . . . . . . . . The Fiscal Agency Agreement (as defined below) and the global
bonds will be governed by and interpreted in accordance with the
laws of the State of New York. The laws of the Republic will govern
all matters governing authorization and execution of the Fiscal
Agency Agreement and the global bonds by the Republic.
Conflicts of Interest . . . . . . . . . . . . . . . . As described in the "Use of Proceeds," the Republic intends to use a
portion of the net cash proceeds from the sale of the global bonds to
pay the purchase price and accrued interest for the Old Bonds it
purchases pursuant to the Invitation for Offers. Each of Citigroup
Global Markets Inc., The Hongkong and Shanghai Banking
Corporation Limited and Standard Chartered Bank and/or their
respective affiliates may be a holder of certain of the Old Bonds as set
forth in the Invitation for Offers and may, together with their
respective affiliates, each receive 5% or more of the proceeds from
the offering of global bonds. Because of the manner in which the net
proceeds are being used, the offering of global bonds will be
conducted in accordance with Financial Industry Regulatory
Authority ("FINRA") Rule 5121. In accordance with that rule, the
appointment of a "qualified independent underwriter" is not necessary
in connection with the offering of global bonds because the securities
offered hereby are investment-grade rated. Accordingly, the offering
of global bonds is being made in compliance with the requirements of
FINRA Rule 5121. Additionally, client accounts over which
Citigroup Global Markets Inc., The Hongkong and Shanghai Banking
Corporation Limited and Standard Chartered Bank have investment
discretion are not permitted to purchase the global bonds, either
directly or indirectly, without the specific written approval of the
accountholder.
S-7

USE OF PROCEEDS
The Republic intends to use the net cash proceeds from the sale of the global bonds to pay the purchase price and
accrued interest for the bonds that it purchases pursuant to its Invitation for Offers, as well as expenses incurred
by the Republic in that transaction. The Republic may also use any proceeds for general purposes of the
Republic, including budgetary support. None of the underwriters shall have any responsibility for the application
of the net cash proceeds from the sale of the global bonds.
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RECENT DEVELOPMENTS
The information in this section supplements the information about the Republic that is included in the
accompanying prospectus dated February 11, 2016.
Inflation
Inflation, measured as the change in the consumer price index or CPI, for the month of January 2016 was
1.3%, lower than the December 2015 inflation rate of 1.4% and the January 2015 inflation rate of 2.4%. The
lower inflation rate in January 2016 compared to January 2015 was primarily due to a decline in prices for
housing, water, electricity, gas and other fuels. The indices for food and non-alcoholic beverages, clothing and
footwear, furnishing, household equipment and routine maintenance of the house, health, recreation and culture,
education and restaurant and miscellaneous goods and services also recorded smaller gains in January 2016
compared to January 2015.
In 2015, the producer price index recorded average deflation of 6.6%, a higher rate of deflation than the
annual deflation rate of 0.9% recorded in 2014. The price indices for petroleum products, wood and wood
products and electrical machinery contracted by 20.7%, 18.7% and 15.6%, respectively, in 2015, compared to a
contraction of 2.5% and increases of 2.6% and 1.3%, respectively, in 2014. The price indices for footwear and
wearing apparel, printing, rubber and plastic products, non-metallic mineral products, basic metals, transport
equipment and furniture and fixtures also recorded contractions during 2015.
International Reserves
As of January 31, 2016, preliminary data indicate that the Republic's gross international reserves were
$80,158.5 million, a decrease of 0.7% from the $80,716.0 million recorded as of January 31, 2015 and a decrease
of 0.6% from the $80,666.9 million recorded as of December 31, 2015. The decrease in January 2016 compared
to the level recorded in December 2015 was due mainly to a $1,015.7 million decrease in foreign investments
during the month, which was partially offset by a $337.9 million increase in gold reserves and a $170.9 million
increase in foreign exchange reserves. The level of gross international reserves as of January 31, 2016 was
sufficient to cover approximately 10.2 months of imports of goods and payments of services and income, and
was equivalent to 5.5 times the Republic's short-term debt based on original maturity and 4.0 times based on
residual maturity. Net international reserves at the end of January 2016 were $80,156.5 million.
The Philippine Securities Markets
As of February 16, 2016, the Philippine Stock Exchange composite index closed at 6,744.0, a 3.0% decrease
from the 6,952.1 recorded as of the end of 2015, and a 6.7% decrease from the 7,230.6 recorded as of the end of
2014.
Debt
Public Sector Debt
As of September 30, 2015, total outstanding consolidated public sector debt was P7.3 trillion, equivalent to
55.8% of the Republic's GDP, compared with a public sector debt-to-GDP ratio of 58.8% as of December 31,
2014. As of September 30, 2015, total outstanding consolidated Government debt was P5.9 trillion, reflecting a
3.5% increase over the P5.7 trillion recorded as of December 31, 2014. Total domestic debt decreased by 5.0%
to P5.0 trillion as of September 30, 2015 from P5.3 trillion as of December 31, 2014. The decrease was partially
offset by an increase in foreign debt of 6.5% to P2.3 trillion as of September 30, 2015 from P2.1 trillion as of
December 31, 2014. The overall increase in Government debt was attributed to an increase in borrowings and
issuances of securities by the Government during the period from January 1, 2015 to September 30, 2015.
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Direct Debt of the Republic
As of December 31, 2015, the total direct debt of the Republic was P5,954.5 billion, a 3.8% increase from
the P5,735.2 billion recorded as of December 31, 2014. The increase was mainly due to a 8.1% increase in
external medium- and long-term debt from P1,914.6 billion as of December 31, 2014 to P2,070.2 billion as of
December 31, 2015. The increase was partially offset by a decrease of 6.1% in domestic short-term debt from
P281.7 billion as of December 31, 2014 to P264.4 billion as of December 31, 2015.
Direct Domestic Debt of the Republic
As of December 31, 2015, the total direct domestic debt of the Republic was P3,884.4 billion, a 1.7%
increase from the P3,820.6 billion recorded as of December 31, 2014. The increase was mainly due to a 2.3%
increase in treasury notes and bonds from P3,538.3 billion as of December 31, 2014 to P3,619.3 billion as of
December 31, 2015. The increase was partially offset by a 6.1% decrease in treasury bills from P281.7 billion as
of December 31, 2014 to P264.4 billion as of December 31, 2015.
Direct External Debt of the Republic
As of December 31, 2015, the total direct external debt of the Republic was $43.9 billion, a 2.5% increase
from the $42.8 billion recorded as of December 31, 2014. The increase was mainly due to a 13.7% increase in
external multilateral loans from $8.7 billion as of December 31, 2014 to $9.9 billion as of December 31, 2015.
External issuances of U.S. dollar bonds also increased by 1.2% from $23.2 billion as of December 31, 2014 to
$23.5 billion as of December 31, 2015. These increases were partially offset by a 4.2% decrease in external
bilateral loans from $6.7 billion as of December 31, 2014 to $6.4 billion as of December 31, 2015, and by a 5.2%
decrease in external issuances of Philippine Peso notes from $2.9 billion as of December 31, 2014 to $2.8 billion
as of December 31, 2015.
Government-Guaranteed Debt
As of December 31, 2015, total outstanding guarantees of indebtedness by the Republic amounted to
P437.9 billion, a 2.7% increase from the P426.2 billion recorded as of December 31, 2014. The increase was
mainly due to a 17.2% increase in domestic Government guarantees from P118.1 billion as of December 31,
2014 to P138.4 billion as of December 31, 2015. The increase was partially offset by a 2.8% decrease in external
Government guarantees from P308.1 billion as of December 31, 2014 to P299.5 billion as of December 31,
2015.
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