PH debt burden down slightly in October

The stronger peso clipped the value of the national government’s outstanding debt to P7.91 trillion in October, the latest Bureau of the Treasury data released on Friday showed. End-October total outstanding obligations declined 0.02 percent month-on-month from P7.908 trillion in September, although the amount was 10.3 percent higher from P7.167 trillion a year ago.

Domestic debt, which accounted for the bulk, or 67.1 percent of total, inched up by 0.9 percent month-on-month but increased by a faster 14.8 percent year-on-year to P5.305 trillion. In a statement, the Treasury attributed the month-on-month increased in locally sourced borrowings to “a P47.5-billion net issuance of government securities, which was partially offset by a P520-million reduction in the local currency valuation of onshore dollar bonds caused by peso appreciation.”

The Treasury noted that the peso strengthened to 50.769:$1 at end-October from 51.795 against the greenback in September.

In the meantime, external debt declined 1.8 percent month-on-month even as it rose 2.1 percent year-on-year to P2.601 trillion.

According to the Treasury, the month-on-month decrease was also due to “local currency appreciation which trimmed the valuation of US dollar-denominated debt by P52.5 billion, as well as due to net repayments of loans amounting to P630 million.”

The stronger peso also offset the P4.5 billion added to foreign debt by the appreciation of third currencies, according to the Treasury.