The national government’s total outstanding debt increased in June due to the net issuance of both domestic and external obligations and the depreciating peso, the Bureau of Treasury said on Tuesday, July 30.
Latest data from BTr showed that the NG’s total outstanding debt reached P15.48 trillion last June, up by P135.90 billion or 0.9 percent from P15.35 trillion last May.
“This was partially offset by the impact of third-currency depreciation on the valuation of corresponding debt denominated in those currencies,” BTr said.
Year-on-year, the government’s debt also increased by 9.4 percent or P1.34 trillion from P14.15 trillion last June 2023.
Since the beginning of the year, external debt has increased by P312.05 billion or 6.8 percent from its end-December 2023 level, while growing by P465.36 billion or 10.5% on a year-on-year basis.
Of the total debt stock in June, 31.71 percent is external debt while 68.29 percent is domestic debt.
Domestic debt
The domestic debt level of P10.57 trillion as of June is P130.28 billion or 1.2 percent higher compared with the end-May 2024 level at P10.44 trillion.
BTr attributed the increase in domestic debt to the P129.89 billion net issuance of government securities and the P0.39 billion effect of peso depreciation on foreign-currency-denominated domestic debt.
The government’s domestic debt has increased by P555.19 billion or 5.5 percent from the end-December 2023 level at P10,017 trillion. Domestic debt year-on-year growth is P870.29 billion or 9.0 percent.
External debt
Meanwhile, the country’s external debt of P4.91 trillion was P5.62 billion or 0.1 percent higher than the end-May 2024 level at P4.90 trillion.
The Treasury Bureau attributed the increment to the P7.95 billion in net availment and the P11.23 billion upward revaluation of US dollar-denominated debt due to peso depreciation.
“This was partially offset by the P13.56 billion effect of favorable third-currency adjustments,” BTr said.
Since the beginning of the year, external debt has increased by P312.05 billion or 6.8 percent from its end-December 2023 level at P4.6 trillion, while growing by P465.36 billion or 10.5 percent on a year-on-year basis.
NG guaranteed obligations have decreased by P6.56 billion or 1.9 percent from its end-May 2024 level to P343.65 billion as of end-June 2024. The decline was primarily driven by the net repayment of both domestic and external guarantees amounting to P5.02 billion and P0.73 billion, respectively.
Additionally, the impact of third-currency adjustments against the US dollar amounting to P1.18 billion was able to offset the P0.37 billion increase caused by peso depreciation. Since end-December 2023, NG guaranteed obligations have decreased by P5.79 billion or 1.7 percent. (TCSP)
