THE National Government’s debt increased to P14.35 trillion as of August 31, the Bureau of Treasury (BTr) said Monday, October 2, 2023.
The BTr said the 0.7 percent or P105.28 billion increase in the country’s debt as compared to July 2023 was due to the peso depreciation from 54.834 to 56.651 against the US dollar.
It said domestic borrowings, which accounted for 68.2 percent or P9.79 trillion of the total debt stock, were 0.02 percent lower, amounting to P21.24 billion, compared to the previous month, primarily due to "large retail bond maturities."
It is, however, 6.3 percent or P582.74 billion higher than the end-December 2022 level.
“New domestic debt issued during the month totaled P229.29 billion with debt redemption of P253.43 billion, resulting in a net repayment of P24.14 billion,” the BTr said.
“This was partially offset by the P2.90 billion incremental value caused by peso depreciation on foreign currency-denominated domestic securities,” it added.
Foreign borrowings, totaling P4.56 trillion, are up by P126.52 billion or 2.9 percent from the previous month.
The BTr said the peso depreciation against the US dollar caused a P146.85 billion upward revaluation of US dollar-denominated debt in August, although it was partially offset by the P22.11 billion downward revaluation of the third-currency debt component.
It said the net availment of foreign loans also contributed P1.78 billion to the external debt stock.
Compared to the end-December 2022 level, the external debt is P347.98 or 8.3 percent higher.
“Total NG guaranteed obligations rose by P3.18 billion or 0.9 percent month-on-month to P366.58 billion as of end-August 2023. The higher level of guaranteed debt is attributed to the net availment of domestic guarantees amounting to P2.44 billion and the P4.03 billion revaluation effect of peso depreciation on external guarantees surpassing the P3.29 billion in repayments,” said BTr.
“Year-to-date NG guaranteed obligations have decreased by P32.47 billion of 8.1 percent from the end-December 2022 level,” it added.(SunStar Philippines)