End-June government debt rises to P5.5T


The national government (NG) debt stood at P5.451 trillion as of end-June 2013, rising 3 percent from the recorded figure a year ago, the Bureau of Treasury (BTr) said.

Comparing to the P5.437 trillion posted at the close of 2012, the BTr said that the end-June data registered a “modest” 0.3-percent year-to-date increase.

It added that government debt continues to be sustainable, falling to 49.5 percent in proportion to gross domestic product as of end-June 2013.

The bureau noted that June figures indicate an improvement from end-December 2012 when the ratio stood at 51.5 percent.

Of the total government debt, the bureau noted that P1.95 trillion was from foreign creditors while P3.5 trillion was sourced from domestic sources for a 36-percent to 64-percent distribution between external and domestic debt.

For the year, domestic debt has risen by P33 billion, or 1 percent as of June. The BTr attributed the increase in domestic debt to the combined effect of the net issuance of government securities, coupled with the impact of the peso depreciation on Multicurrency Retail Treasury Bonds.

Meanwhile, external debt has fallen by 1 percent, or P47 billion from the start of the year.

“The decrease in nominal external debt was tempered by the rise in peso value due to the depreciation of the peso over the May-June period and the net appreciation of third currencies against the US dollar,” the bureau stated.

On the other hand, the BTr reported that the total guaranteed debt of the government has fallen to P491 billion as of June 2013 from P502 billion at the start of the year. It explained that currency adjustments over May and June reversed the downward trend in external guaranteed debt over the period.

Domestic guaranteed debt remained unchanged for the year.


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