• Nat’l govt debt up 2.6% at P6.1T as of end-Nov

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    THE outstanding debt of the national government rose to P6.10 trillion as of end-November as a weak peso boosted foreign obligations.

    Data released by the Bureau of the Treasury (BTr) on Tuesday showed the national government’s outstanding debt climbed to P6.10 trillion in the first 11 months of 2016 from P5.95 trillion a year earlier, reflecting an increase of 2.6 percent or P152 billion.

    Month-on-month, the BTr said national government liabilities increased slightly by P35.17 billion or 0.6 percent from its end- October level due to currency adjustments and net issuance of government securities.

    Foreign borrowings as of end-November stood at P2.16 trillion, 5.3 percent higher than the year-earlier level and up 0.7 percent or P14.2 billion from the end-October level.

    The external debt in November was priced at P49.74 to a dollar compared with P47.10 a year earlier and P48.48 as of end-October this year.

    “For November, the growth in external obligations were significantly driven by the impact of depreciation of the peso against the US dollar (P1.262 difference from the previous month’s level), amounting to P55.99 billion, offsetting the effect of third currency depreciation against the US dollar that resulted in a reduction of the peso value of third currency liabilities by P36.15 billion and net repayments amounting to P5.56 billion,” it said.

    The National government’s domestic debt rose by 1.1 percent year-on-year to P3.93 trillion and was up 0.5 percent from end-October.

    “The escalation in domestic obligations mainly reflects the net issuance of government securities amounting to P20.81 billion and weakening of peso against the US dollar that increased the peso value of onshore-dollar denominated bond amounting to P0.63 billion,” it said.

    Meanwhile, debt guaranteed by the national government expanded by 20.9 percent to P532 billion from P440 billion a year earlier. Month-on-month, government-guaranteed debt decreased by P28 billion or 5.1 percent.

    “The decline in NG contingent liabilities was due to the effect of net repayments on external guarantees and the depreciation of third currencies amounting to P23.51 billion and P13.66 billion, respectively. These more than offset the effect of the weaker peso amounting to P8.39 billion and net availments on domestic guarantees amounting to P0.22 billion,” the BTr said.

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