The national government’s outstanding debt expanded 2 percent or P113.34 billion year-on-year to P5.723 trillion in September, the Bureau of the Treasury (BTr) said on Thursday, attributing the increase to higher borrowing and the impact of the peso’s weakness on debt repayments.
Compared with the previous month’s level, the debt figure in September was higher by 0.2 percent or P9.461 billion from P5.713 trillion recorded in August.
Domestic debt, which accounted for P3.759 trillion of the total, rose 2.2 percent year-on-year but dipped 0.5 percent from its end-August total of P3.778 trillion due to net redemptions, the BTr said in a statement.
“Domestic debt currently accounts for 66 percent of the total, in line with risk management objectives,” it added.
External obligations for the month reached P1.964 trillion, P28 billion or 1.4 percent higher than the previous month’s level of P1.936 trillion, as peso depreciation negated the positive impacts of net repayments and adjustments in third currencies against the dollar. On a year-to-year basis, September external debt increased by 1.6 percent from the September 2013 level of P1.932 trillion.
Despite the overall increase in outstanding debt, the BTr said total national government-guaranteed debt dropped to P456 billion in September from P457 billion in August and P487 billion in September 2013, reflecting declines of 0.2 percent month-on-month and 6.2 percent year-on-year.