The Philippine government’s debt surged by 2.2 percent in May on the back of the depreciating Philippine peso’s impact on the government net financing during the month.
Data from the Bureau of Treasury released on Thursday, July 4, showed that the government’s debt rose to P15.347 trillion as of May, up by P330.390 billion from P15.017 trillion last April.
The government’s debt as of May 2024 is also 8.43 percent or P1.193 trillion higher than P14.154 trillion recorded in May 2023.
“Total debt increased by P330.39 billion or 2.2% from the end-April 2024 level primarily due to the impact of local currency depreciation on the valuation of foreign-currency-denominated debt,” BTr said in a statement.
BTr said the end-May domestic debt level of P10.442 trillion is P134.34 billion or 1.3 percent higher than P10.308 trillion recorded as of end-April 2024.
The state-run Treasury Bureau attributed the increase to the P131.66 billion net issuance of government securities and P2.68 billion effect of peso depreciation on foreign-currency denominated domestic debt.
Since the beginning of the year, domestic debt has increased by P424.91 billion or 4.2% while year-on-year expansion is P854.33 billion or 8.9 percent.
This came from the P2.68 billion effect of peso devaluation on domestic debt denominated in foreign currencies and P 131.66 billion net issuing of government securities.
Domestic debt year-to-date has climbed P731.33 billion, or 5 percent.
Meanwhile, BTr said the government’s foreign debt reached P4.904 trillion as of May, P196.04 billion or 4.2% higher than the P4,708 trillion recorded last end-April 2024.
The Treasury Bureau attributed the increase in the external debt to the P122.04 billion in net foreign loan availment and P76.94 billion in upward revaluation of US dollar-denominated debt.
Meanwhile, the favorable third-currency movement provided a P2.94 billion downward revaluation effect. External debt has increased by P306.42 billion or 6.7% from its end-December 2023 level and by P339.15 billion or 7.4 percent on a year-on-year basis. (TCSP)
