THE Philippines’s outstanding debt as of end-June rose by 10.6 percent year-on-year to P14.15 trillion, a new record high for the country, from last year’s P12.791 trillion, according to the Bureau of the Treasury (BTr).
The outstanding debt stock was P51.31 billion higher than May’s P14.095 trillion level due to net issuance of domestic securities, the Treasury said.
On an annual basis, the latest debt figure was P1.356 trillion higher than the P12.791 trillion recorded outstanding debt by the government in June of last year, Treasury data showed.
The country’s debt has grown by P730 billion since end-December 2022 when it was estimated at P13.42 trillion.
The latest debt figure is already 96.72 percent of the anticipated P14.63-trillion outstanding debt of the national government by the end of the year.
The Treasury explained that 68.6 percent of the country’s outstanding debt were domestic borrowings while the remaining 31.4 percent were sourced externally.
The national government’s (NG) domestic debt reached P9.7 trillion at the end of the first half. The figure was 1.2 percent higher than the P9.588 trillion recorded in May and was 10.7 percent over last year’s P8.767 trillion, according to the Treasury.
“For the month, domestic debt growth amounted to P114.32 billion due to the net issuance of government bonds driven by the NG’s financing requirements. Year-to-Date, domestic debt has an increment of P494.44 billion or 5.4 percent,” the Treasury said.
Meanwhile, the NG’s external debt rose by 10.4 percent on an annual basis to P4.445 trillion from P4.024 trillion recorded in June 2022.
However, on a monthly basis, the external debt was lower by P63 billion than the P4.508 trillion recorded in May.
“The reduction in foreign debt was driven by the impact of currency adjustments affecting both
USD- and third-currency equivalents leading to a decrease in the peso value of the debt, amounting to P69.98 billion and P8.28 billion, respectively,” the Treasury said.
“These more than offset the availment of foreign loans amounting to P15.25 billion,” it added.
The NG’s outstanding guaranteed obligations fell by 10.7 percent to P396.7 billion in June from P413.9 billion in the same month last year. It was also lower by 2.6 percent on a monthly basis from May’s P379.7 billion.
“For the month, the decline in guaranteed debt was attributed to the net repayment of both domestic and external guarantees amounting to P4.36 billion and P0.89 billion, respectively,” the Treasury said.
“This was further trimmed because of the effect of currency adjustments on both USD- and third currency-denominated guarantees amounting to P2.78 billion and P1.95 billion, respectively,” the Treasury added.
PHL end-June debt up 10.6% to record P14.1 trillion
Source: News Paper Radio
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