THE national government’s outstanding debt rose to a record P7.93 trillion in August, boosted by the weaker local currency and net issuance of external and domestic loans, the Bureau of the Treasury (BTr) reported over the weekend.
In a statement, the Treasury bureau said the amount was a 1.73-percent or P135.02-billion increase from July’s P7.80 trillion.
“Of the total stock, 33.59 percent were sourced from external markets while 66.41 percent were borrowed domestically,” it added.
Domestic borrowings totaling P5.27 trillion — up 0.4 percent from the July amount — accounted for the bulk of outstanding debt, while external debt surged by 4.4 percent to P2.66 trillion.
Outstanding debt the year before stood at P7.10 trillion, with domestic and foreign obligations at P4.57 trillion and P2.53 trillion, respectively.
“For the month, the increment in the level of domestic debt was the combined effect of the net issuance of government securities amounting to P21 billion and P0.63 billion impact of peso depreciation on onshore dollar bonds,” the Treasury explained.
The BTr credited the increase in foreign debt in August to “the effect of local and third-currency fluctuations which increased the value of foreign debt by P63.45 billion and P4.64 billion, respectively.”
A foreign-exchange rate of P52.12 against the dollar was used for the latest data, compared with July’s P50.86:$1. The exchange rate used a year earlier was P53.47:$1.
“In addition, availment of foreign loans amounted to P45.31 billion for the period,” it added.
The said foreign loans include the successful issuance of $855 million (92 billion Japanese yen) worth of multiple tenor “samurai” bonds in the Japanese onshore market, the BTr said.
Government guaranteed debt, meanwhile, rose from July by 1.3 percent or P6.46 billion to P490.27 billion in August. It is up 1.1 percent from the year-ago figure.
The month-on-month increase, the Treasury said, “was due to the net effect of local and third-currency fluctuations that increased the value of external guarantees by P5.73 billion and P3.20 billion, respectively, and net availment of external guarantees amounting to P0.91 billion.”
These were said to have been tempered by the repayment of domestic guarantees amounting to P3.38 billion.