Outstanding debt hit record P6.444 trillion at end-September

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As the government borrowed more debt paper in September, its outstanding debt reached a new record-high P6.444 trillion at the end of the first nine months, the latest Bureau of the Treasury data released Friday showed.

The national government’s outstanding obligations inched up by a mere 0.2 percent from P6.432 trillion as of end-August, although it increased by a faster 5.9 percent from P6.087 trillion in the same nine-month period last year.

The Treasury primarily attributed the month-on-month rise in combined local and external debt to “domestic securities issuance for the month which more than offset the effect of currency revaluation on foreign currency debt.”

While the weak peso pushed debt higher in recent months, the local currency recovered to 50.83:$1 at end-September from 51.171:$1 in August, the Treasury noted.

The debt sourced from domestic sources rose 0.9 percent month-on-month and 7.3 percent year-on-year to P4.188 trillion as of September.

“The increase in domestic debt was due to net issuance of seven- and 10-year treasury bonds amounting to P36.96 billion tempered by the P160-million impact of the stronger peso,” the Treasury said.

External debt, meanwhile, declined 1.1 percent month-on-month to P2.256 trillion due to “a combined effect of the stronger peso and appreciation of third-currencies against the US dollar amounting to P15.19 billion and P8.83 billion, respectively, adding to net repayments of P410 million.”

However, the end-September foreign debt increased 3.4 percent from P2.182 trillion a year ago.

As for the national government’s guaranteed obligations, these decreased 1.7 percent month-on-month and 13.4 percent year-on-year to P489.1 billion at the end of the first nine months.

“The decline in the national government’s guarantees was due to the combined effect of peso appreciation amounting to P1.96 billion, the effect of third currency revaluation on government guarantees amounting to P4.04 billion and net repayments on both domestic and external guarantees amounting to P290 million and P2.19 billion, respectively,” the Treasury explained. /jpv