NATIONAL government debt rose 7.8 percent year-on-year to P6.34 trillion in May, but fell from April after the government redeemed some of its securities and a stronger peso cut the value of the try’s dollar bonds, the Bureau of the Treasury (BTr) said on Monday.
The Treasury did not offer any explanation for the year-on-year rise in government debt.
Domestic borrowings accounted for 65 percent or P4.13 trillion of the total, while 35 percent or P2.208 trillion came from external sources, it said.
Domestic debt grew 9 percent year-on-year from P3.79 trillion, while foreign obligations rose 5.7 percent from P2.08 trillion.
Treasury data showed that the country’s foreign loans were computed on an exchange rate of P49.76 to the dollar in May, weaker than the P46.72 used a year earlier.
Debt down from April
Month-on-month, the national government’s outstanding debt in May fell by P25.06 billion or 0.4 percent from the preceding month’s level.
Domestic debt fell by P22.77 billion or 0.5 percent for the month “primarily due to the net redemption of
government securities amounting to P22.70 billion and a stronger peso, which reduced the value of onshore dollar bonds,” it said.
External debt was lower by P2.29 billion or 0.1 percent, compared with the end-April 2017 level. The Treasury attributed the drop to the combined effect of a stronger peso and net repayments of foreign obligations amounting to P7.07 billion.
“These more than offset the upward revaluation in third currency-denominated debt worth P4.78 billion,” it said.
The data also showed that the P49.76:$1 exchange rate used in May was stronger than the P49.90:$1 used in April.
Debts guaranteed by the national government were down 11 percent at P493 billion from P554 billion a year earlier.
Month-on-month, government-guaranteed debt dropped by P1.46 billion or 0.3 percent due to net repayments of domestic guarantees amounting to P2.57 billion, alongside the P0.80 billion effect of the peso appreciation on foreign guarantees.
“These more than offset the effect of net availments and third currency revaluation amounting to P0.38 billion and P1.53 billion, respectively,” the bureau said.