The national government’s outstanding debt increased 2.3 percent year-on-year to P5.948 trillion as of end-June this year, on higher external borrowings, the Bureau of Treasury said over the weekend.
Latest data from the Treasury showed outstanding debt increased from P5.816 trillion recorded in June 2015. On a monthly basis, the figure increased 1.1 percent or about P62.4 billion from P5.885 trillion in May.
Domestic debt dropped 0.3 percent to P3.828 trillion in June from P3.839 trillion a year ago. However, it was up by P31.25 billion from P3.797 trillion recorded in May.
Data showed that of the total domestic debt, P598 billion represented loans while the balance were in debt securities.
Domestic debt accounted for almost 64.4 percent of total outstanding government debt as of end-June.
“For the month, net issuance of government securities and the depreciation of the peso against the US dollar contributed to the growth in domestic obligations equivalent to P31.12 billion and P0.13 billion, respectively,” the Treasury said in a statement.
Foreign debt, which accounted for 35.6 percent of national debt, climbed 7.2 percent to P2.119 trillion as end-June period from P1.976 trillion in the same month last year. This was also P31.153 billion higher than the end-May 2016 level.
“The increment in external liabilities was the combined effect of currency fluctuations on US dollar- and third currency-denominated debt that raised the peso value of outstanding obligations by P12.65 billion and P21.64 billion, respectively,” the Treasury said.
“These far outpaced net repayments on external obligations amounting to P3.14 billion,” the agency said.
Meanwhile, national government’s guaranteed debt jumped 40.2 percent to P563.26 billion in June from P401.91 billion recorded in the same period last year.
The Treasury said the change was primarily due to the adjustment and reconciliation of outstanding guarantees extended by the national government.
The agency said foreign exchange fluctuations against the US dollar and third currencies raised the peso value of external guaranteed debt by P1.85 billion and P9.70 billion, respectively.
“This more than offset the effect of net repayments on NG’s domestic guarantees with NFA amounting to P1.58 billion from its credit line with LBP and DBP and repayment on external guarantees amounting to P1.26 billion,” the Treasury said.