Gov’t debt burden rises to P4.81T as of end-June

The government’s debt stock rose to P4.81 trillion as of June, up P33 billion, or 0.7 percent, from the May level due to a weaker peso and the net issuance of domestic securities.

With the population estimated at 95.6 million, the amount of total outstanding debt would mean that each citizen has a share of P50,315.

In contrast, data from the National Statistical Coordination Board showed that per capita gross national income [formerly called gross national product]—which includes payments for goods produced and services rendered abroad—amounted to P33,560 at current prices as of the end of June.

Also, the NSCB said each Filipino spent P18,298 for goods and services during the second quarter.

Data on total outstanding debt from the Bureau of the Treasury showed that 57 percent, or P2.76 trillion, was borrowed from domestic lenders. Local debt increased by P22 billion, or 0.8 percent, from P2.74 trillion posted in May.

The increase was attributed to the government having issued more debt paper compared to maturing ones that were redeemed.

On the other hand, 43 percent, or P2.05 trillion, of the total outstanding debt was booked in foreign currencies such as the dollar, the euro and the yen. Aside from loans extended by multilateral lenders and official aid from foreign governments, the Philippines also borrows abroad through the issuance of bonds denominated in these currencies.

Foreign borrowings increased by P11.2 billion, or 0.5 percent, from the P2.04 trillion owed to overseas lenders in May.

The increase in foreign debt was due mainly to the depreciation of the peso against the dollar, which added P9 billion to the debt stock.

Aside from that, the appreciation of the yen and the euro against the dollar beefed up total obligations by P2 billion.

Another P2 billion was added to the foreign debt stock because of the late receipt of notices of availment, meaning that new funds came in but papers were not submitted in time for previous accounting.

However, these additions in the debt stock was partially offset by the government paying P2 billion more than new loans it got in June.

Government debt paper denominated in dollars amounted to an equivalent of P1.02 trillion as of June while yen and euro loans stood at P80.8 billion and P31.4 billion, respectively.

The government’s total contingent debt—composed mainly of sovereign guarantees—went up by P25.6 billion to P595 billion.

The increase was attributed to new loans extended to the state-run Power Sector Assets and Liabilities Management Corp. through a syndicated facility.