Outstanding gov’t debt breaches P6T

The outstanding debt of the national government further inched up to P6.09 trillion as of September—the first time it breached the P6-trillion mark—partly due to a weaker peso.

The latest Bureau of the Treasury data showed that the national government’s end-September debt portfolio rose 1.8 percent from P5.98 trillion in end-August as well as increased by 2.5 percent from P5.94 trillion a year ago.

In September, domestic obligations grew 0.5 percent month-on-month to P3.9 trillion.

“The growth in domestic debt portfolio was a combined effect of government securities net issuance amounting to P19.79 billion and upward adjustment in the peso value of onshore dollar securities by P960 million due to the peso depreciation,” the Treasury explained in a statement.

The peso weakened sharply to 48.482 to $1 as of end-September from 46.552 in August, the Treasury noted.

The bulk or P3.9 trillion were debt securities from the sale of treasury bills and bonds. Also outstanding were P598 million in loans, of which P442 million were assumed loans of state-run Development Bank of the Philippines, while P156 million were government agencies’ direct loans.

The external debt, meanwhile, grew by a faster 4.1 percent month-on-month to P2.18 trillion.

“The month-on-month change [in foreign debt] was attributed to the depreciation of the peso against the US dollar (almost P2 depreciation) and third currencies that raised the peso value of US dollar and third-currency denominated indebtedness by P86.91 billion and P2.39 billion, respectively. This offset the effect of net repayments amounting to P3.48 billion,” the Treasury said.

Of the foreign obligations, P1.34 trillion were debt securities. The balance of P844.8 billion were loans, of which P813.6 billion were direct loans to agencies while P31.2 billion were relent.