Govt debt P5.71T, up 1.2% on-yr

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Outstanding debt by the government rose to P5.714 trillion in October from a year earlier, with domestic and external obligations together growing 1.2 percent or P65.05 billion, the Bureau of the Treasury (BTr) said on Tuesday.

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From September, the new level of outstanding debt reflects a 0.2 percent drop or P9.402 billion, official data shows.

Local debt accounted for two-thirds of the total, which the treasury bureau said shielded the outstanding balance from the full impact of exchange rate fluctuations.

“Debt indicators highlight the steady improvement in the composition of national government debt,” the treasury said in a statement.

“The high concentration of debt denominated in local currency helps mitigates the impact of foreign exchange fluctuations on 67.5 percent of the whole portfolio,” it said.

Domestic obligations stood at P3.756 trillion, up 0.8 percent year-on-year but down 0.1 percent from the end-September level of P3.759 trillion due to net redemptions.

The foreign component of the outstanding government debt reached P1.958 trillion, up by 1.9 percent from the October 2013 level of P1.921 trillion, the data shows.

Compared with the preceding month’s level, external debt dropped P6 billion or 0.3 percent on account of net repayments and the strengthening of the local currency against the US dollar over the period, the treasury said.

The country’s foreign borrowings in October consisted of US dollar bonds and notes, yen bonds, euro bonds and peso global bonds—using a foreign exchange rate of P44.90 to a dollar.

Meanwhile, national government-guaranteed debt fell to P446 billion in October from P456 billion in September and P484 billion in October 2013, recording declines of 2.2 percent month-on-month and 7.8 percent year-on-year.

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