Tuesday, December 12, 2017
Close  
business /
  • 2983
    shares
DUE TO WEAKER PESO

PH debt reaches record P6.4T at end-August

By: - Reporter / @bendeveraINQ
/ 03:37 PM September 29, 2017

The weaker peso further raised the national government’s outstanding debt to a record P6.432 trillion at end-August, up 7.6 percent year-on-year based on the latest data of the Bureau of the Treasury (BTr).

Outstanding obligations at the end of the first eight months rose from P5.98 trillion a year ago and inched up 0.73 percent from end-July’s P6.385 trillion.

ADVERTISEMENT

In a statement, the BTr attributed the month-on-month increase in total debt mainly to “domestic net issuance and external loan availments alongside local currency depreciation against the US dollar and third currency adjustments.”

The peso remained at nearly 11-year lows against the greenback last month.

The bulk or 66 percent of the end-August outstanding debt amounting P4.152 trillion were borrowed locally, up 6.9 percent year-on-year and 0.1 percent month-on-month.

“Net issuance of government securities amounting to P5.01 billion and the P330-million net effect of peso depreciation drove the increase in the domestic debt level for the month,” the BTr explained.

As for external debt, the end-August amount stood at P2.28 trillion, up 8.8 percent year-on-year as well as 1.8 percent month-on-month.

“The increase [in foreign debt] was primarily due to P10.36 billion in net availment, the P29.66-billion impact of peso depreciation against the dollar and net appreciation of third currencies amounting to P1.01 billion,” the BTr said.

As for the national government’s outstanding guaranteed debt, the level as of August increased 0.5 percent month-on-month but declined 10.2 percent year-on-year to P497.5 billion.

“The rise in national government guarantees was due to the combined effect of peso depreciation amounting to P3.84 billion and the effect of third currency revaluation amounting to P1.02 billion,” the BTr noted.

ADVERTISEMENT

“These more than offset net repayments on both domestic and external guarantees amounting to P2.34 billion and P120 million, respectively,” it added.     /kga

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: economy, national debt, Philippines, weak peso
For feedback, complaints, or inquiries, contact us.




© Copyright 1997-2016 INQUIRER.net | All Rights Reserved