Peace bonds do not rest in peace-palusot pa

 Dear insansapinas,

Bonds are debt instruments issued by the government which are guaranteed to be paid when they mature.


 Here is the excerpt of the news about the Peace Bonds issued by the DSWD ten years ago.

Treasury: P10b Peace Bonds maturing at P10b

THE controversial P10-billion Peace Bonds will still mature at P10 billion next year, not at P35 billion as alleged in a Manila Standard report Monday, a Bureau of Treasury official said.

The official, who asked not to be named, said the P35-billion redemption listed in the proposed 2011 budget actually referred to the entire P35-billion zero-coupon 10-year bonds, of which P10-billion were Peace Bonds floated by the government in 2001.
The mis-interpretation stemmed from how the P35-billion expenditure was listed in the official Budget of Expenditures and Sources of Financing, specifically on table B.20 of page 204: “Zero coupon T-bond 10 year (PEACE Bonds)—2011 Redemption from the Sinking Fund—P35 billion.”

 IT IS TRUE THAT IT IS GOING TO MATURE AT ITS FACE VALUE BUT ITS PAYMENT WILL AMOUNT TO P35 BILLION kasi may interest. Dadaanin pa sa mga terminologies, suma total ganoon rin.

Ganito yon mga kumare.


Zero coupon bond yan kaya yan ay nabenta ng may discount. example ang halaga ng isang bond ay 1,000 pesoses, baka nabenta yan ng 800  pesoses lang. Kaya nga yong proceeds na Php 10 billion ay hindi Php 10 billion kung hindi mga Php 8 billion lang siguro. Parang tawad sa palengke para lang mabili.


Zero coupon bond, kaya ang interest niyan ay hindi binabayaran, yearly or quarterly. Babayaran yan pag mature ng bonds. kaya ang Php 35 billion ay principal at face value plus interest. Hindi naman babayaran yan at a discounted price. Sinong nababaliw na bondholders ang bibili ng bond na yan kung walang discount? Haber.


Ganito yon, binili ng Php 8 pero ang bayad ay Php 10. So ang bondholder, kumita ng Php 2. Gets ninyo?
Tapos may interest pa at may mga binayaran pa yan ng mga iba't ibang expenses pagfloat ng bonds.


Anong garantiya na babayaran sila? Sa 2011 budget may nakalaan na pambayad. Hindi nga ibinabayad ang interest taon-taon pero may nakaallot sa sinasabing Redemption  for Sinking Fund, Php 10 billion plus interest. Malaki pa ang interest kasi compunded yon eh. sino ba naman ang hindi bibili ng bonds na yan. Yong interest may patong pa. Kaya lunod ang mga taxpayers.


Saan napunta ang proceeds? Sa NGO raw. Do I hear the name Dinky Soliman? Kaya ba ang budget ng DSWD ay mataas? Kaya ba binawasan ang budget para sa fund ng OFW,  sa Public Health at sa state universities? 


Pinaysaamerika