Stronger peso reduces NG debt

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A stronger peso reduced the national government’s outstanding debt to P6.43 trillion — over P63 billion less — at the end of November from the previous month.

Domestic borrowings accounted for the bulk or P4.20 trillion with the remainder owed to foreign creditors, the Bureau of the Treasury reported last week.

Domestic and external debt decreased by 0.2 percent and 2.5 percent, respectively. Of the P63.85 billion reduced from November’s outstanding debt level of P6.43 trillion, over half or P56 billion was due to foreign debt.

“The lower figures were due to the combined effect of peso appreciation which lowered the peso value of external debt by P59.24 billion and net repayments amounting to P5.61 billion. This was tempered by third-currency appreciation against the US dollar amounting to P8.85 billion,” the Treasury said.


Outstanding debt a year earlier, meanwhile, was P6.10 trillion with domestic debt at P3.93 trillion and foreign obligations totaling P2.16 trillion.

The peso, the Treasury noted, rose to P50.346 to the dollar as of end-November from October’s P51.68:$1. The exchange rate a year earlier was P49.74:$1.

Domestic debt decreased by P7.85 billion month-on-month, mostly due to the net redemption of government securities amounting to P7.18 billion and diminution of the peso value of onshore dollar bonds amounting to P670 million.

Government-guaranteed debt also decreased by P10.30 billion or 2.1 percent to P478.79 billion from October’s P489.08 billion. It was down 10 percent from the P532.09 billion recorded in November last year.

The month-on-month result, the Treasury said, was due to the “combined effect of net repayments on both domestic and external guarantees amounting to P4.81 billion and P0.08 billion, respectively, and the impact of peso appreciation amounting to P7.50 billion offsetting the P2.09 billion effect of third-currency appreciation against the US dollar.”

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