Outstanding debt hits record P6.43T

The weaker peso further raised the national government’s outstanding debt to a record P6.43 trillion as of end-August, up 7.6 percent year-on-year, the latest Bureau of the Treasury data showed.

Outstanding obligations at the end of the first eight months rose from P5.98 trillion a year ago and was 0.73-percent higher than end-July’s P6.38 trillion.

In a statement, the Bureau of the Treasury 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 to P4.15 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 Treasury 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 the peso depreciation against the dollar and net appreciation of third currencies amounting to P1.01 billion,” the Treasury 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 the peso depreciation amounting to P3.84 billion and the effect of third currency revaluation amounting to P1.02 billion. These more than offset net repayments on both domestic and external guarantees amounting to P2.34 billion and P120 million, respectively,” according to the Treasury. —BEN O. DE VERA