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Friday, April 19, 2024

Government debt jumped by P758 billion to reach P7.2 trillion in November

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Outstanding government debt jumped P758 billion, or 11.8 percent, over a 12-month period to hit a record P7.195 trillion in November 2018, data from the Treasury show.

The Treasury said that on a month-on-month basis, the national government debt also rose nearly P28 billion or 0.4 percent from P7.167 trillion in October of the same year.

The Treasury said of the total debt stock, 34.6 percent were sourced externally while 65.4 percent were borrowed domestically. 

Domestic debt surged P500 billion, or 11.9 percent, to P4.7 trillion in November from P4.2 trillion a year ago.  It also increased by P87.76 billion or 1.9 percent from the October 2018 level. 

“For the month, the registered increase in domestic debt was due to the net issuance of government securities amounting to P88.33 billion as the committee fully awarded treasury bonds amid strong market demand,” the Treasury said.

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“This was slightly offset by the appreciation of the peso that decreased the value of onshore dollar bonds by P0.57 billion,” it said.

External debt grew P258 billion, or 11.6 percent, to reach P2.487 trillion in November from P2.229 trillion in the same month in 2018.  On a month-on-month basis, foreign debt declined P59.83 billion or 2.3 percent from the end-October 2018 level of P2.547 trillion. 

“The decline was particularly large due to the impact of the stronger peso registered for the month as it relieved P54.15 billion along with net repayments on foreign obligations amounting to P5.89 billion,” it said.

This was slightly tempered by the net appreciation of third-currency denominated external debt amounting to P0.21 billion.

Total government guaranteed obligations declined P12.91 billion or 2.7 percent month-on-month to P471.80 billion in November. 

The Treasury said the reduction in guarantees was due to the impact of currency fluctuations on both dollar and third-currency denominated external guarantees amounting to P6.22 billion and P0.75 billion, respectively.  

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