THE national government’s outstanding debt rose in November 2015 with both domestic and foreign obligations rising, the Bureau of the Treasury (BTr) reported on Wednesday,
Preliminary Treasury data placed government debt at P5.95 trillion, up by 4.1 percent from a year earlier. It was 0.1 percent higher from October.
The local component of total debt stood at P3.9 trillion, a 2.8-percent rise compared to November 2014. Measured against October, domestic debt decreased by 0.1 percent.
Focusing on the month-on-month easing, the BTR said the lower domestic debt was due to the net redemption of government securities amounting to P2.51 billion.
“This was slightly tempered by the P0.10 billion upward adjustment in the peso value of foreign currency domestic debt due to currency depreciation,” the Treasury added.
Year-to-date, the domestic debt portfolio increased by 2 percent or P77.10 billion, it said.
Foreign debt, meanwhile, increased by 6.7 percent year-on-year but eased by 0.1 percent month-on-month to P2.06 trillion.
“While the depreciation of the local currency against the US dollar raised the peso value of debt by P8.78 billion, the external debt portfolio still went down due to the combined effect of net repayments and the depreciation of third-currencies against the US dollar amounting to P5.17 billion and P6.34 billion, respectively,” the Treasury said.
The country’s foreign borrowings in November were priced at an exchange rate of P47.10 to a dollar.
Debt guaranteed by the national government, meanwhile, rose by 1.9 percent to P440 billion in November. From October, guaranteed debt eased by 0.2 percent.
The Treasury said the decline was due to the net depreciation of third currencies against the US dollar, which reduced the peso value of the debt by P1.65 billion and net repayments on domestic guarantees made by net foreign assets on credit lines with the Land Bank of the Philippines and the Development Bank of the Philippines, for the months of October and November 2015, amounting to P400 million.
“This more than offset the depreciation of the local currency against the US dollar which raised the peso value of guaranteed debt by P1.29 billion and net availment of external guarantees amounting to P0.04 billion,” the bureau said.