The national government’s debt rose to P6.43 trillion in August as the peso continued to trade weaker against the dollar, the Treasury bureau said late on Thursday.
Domestic borrowings accounted for 66 percent or P4.15 trillion, with the remaining 34 percent or P2.28 trillion owed to foreign creditors.
The national government’s debt grew by 5.6 percent or P341.4 billion from the end of last year, with domestic obligations rising 5.5 percent or P217.6 billion and external debt up 5.7 percent or P123.8 billion.
The country’s foreign loans were computed at an exchange rate of P51.17 to a dollar. It was at P46.55:$1 a year earlier.
Asked to comment on the rise in government debt, Bank of the Philippines Vice-President Emilio Neri Jr. said: ““That remains to be a manageable level and entails further drop in debt-to-GDP (gross domestic product) ratio.”
He noted, however, that new borrowings this month could change the outlook.
Up from July
Domestic debt rose by P5.34 billion or 0.1 percent from July as “net issuance of government securities amounting to P5.01 billion and the P0.33 billion net effect of peso depreciation drove the increase in the domestic debt level for the month,” the Treasury noted.
External debt increased by P41.03 billion or 1.8 percent. The bureau said this component was predominantly driven P10.36 billion in net availments, the P29.66-billion impact of the peso’s depreciation against the dollar and net appreciation of third currencies amounting to P1.01 billion.
Month-on-month, government-guaranteed debt rose by P2.4 billion or 0.5 percent due to the combined effects of the peso depreciation (P3.84 billion) and third currency revaluations (.02 billion)
“These more than offset net repayments on both domestic and external guarantees amounting to P2.34 billion and P0.12 billion, respectively,” the Treasury said.