National debt rises to P5.45 trillion

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The debt of the national government (NG) rose to P5.4 trillion as of end-June 2013, which is 1.6 percent, or P87 billion higher from the previous month’s level.

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Data from the Bureau of Treasury (BTr) showed that of the total debt, P1.95 trillion, or 35.8 percent, was from foreign creditors while P3.5 trillion, or 64.2 percent, was sourced from domestic creditors.

Month-on-month, domestic debt rose by 1.2 percent, or P40 billion, arising from the combined effect of the P42-billion net issuance of government securities, the P1-billion impact on Multicurrency Retail Treasury Bonds of the peso depreciation against the US dollar and euro, and a P2-billion reversion of National Government Assumed Domestic Liabilities which have been inactive for 25 years.

Meanwhile, on a year-to-date basis as of June, domestic debt rose by 1 percent, slower than the 6.1-percent growth for January to June 2012.

External debts also increased by 2.5 percent, or P47 billion from the previous month’s level, because of the depreciation of the local currency against the US dollar which raised the peso value of debt by P52 billion on top of the net appreciation of the third currencies against the US dollar that further raised the peso value of external debt by P5 billion.

However, the bureau said that this was partially offset by the P10-billion net repayment.

Notwithstanding the rise in peso value over the last two months, the government external debt declined 1 percent since end-December 2012.

“Year-on-year, domestic NG debt expanded by 14.8 percent while external debt fell by 4.9 percent. In comparison, year-on-year NG debt growth in June 2012 was 10.6 percent for domestic and flat for external obligations,” the BTr stated.

On the other hand, total guaranteed debt of the national government increased to P491 billion as of June 2013, 2.5 percent, or P11 billion higher month-on-month.

“The depreciation of the local currency as well as third currency appreciation against the US dollar increased the peso value of debt by P10 billion and P4 billion, respectively,” it added.

The bureau also noted that external guaranteed debt was reduced by P2 billion because of net repayments. Domestic guaranteed debt remained unchanged for the period.

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