THE outstanding debt of the national government rose 2.9 percent or P164 billion year-on-year to P5.85 trillion in July, boosted by higher domestic and foreign obligations, data released by the Bureau of the Treasury (BTr) on Tuesday showed.
Compared with June, government debt in July was up 0.5 percent or P31 billion.
The local component of the total debt amount stood at P3.86 trillion, growing 2.7 percent from a year earlier. Measured against June, domestic debt increased 0.5 percent or P19 billion.
“For July, the increase in domestic debt was due to the net issuance of government securities amounting to P19.36 billion and the upward adjustment of P200 million in the peso value of onshore dollar bonds,” the treasury bureau said.
The BTr statement noted that the peso depreciated to P45.60, as of end-July, from P45.20 at end-June.
Foreign debt increased 3.2 percent year-on-year and 0.6 percent month-on-month to P1.98 trillion in July.
“The increase in external debt was mainly due to the depreciation of the peso value of dollar debt by P17.49 billion,” the bureau said.
However, the rise in foreign debt was tempered by the downward revaluation of third-currency debt against the peso equivalent to P6.73 billion, it said.
The country’s foreign borrowings in June consisted of US dollar bonds and notes, yen bonds, euro bonds and peso global bonds, priced at a foreign exchange rate of P45.60 to a dollar.
Debt guaranteed by the national government fell 11.9 percent to P402 billion in July from P456 billion a year earlier. Guaranteed debt on a month-on-month comparison increased 0.2 percent from P401 billion in June.
“The increase in guaranteed obligations was due to the combined effect of currency adjustments, which raised the peso value of debt by P2.62 billion and net availment of external guarantee amounting to P10 million,” the BTr added.