The national government’s outstanding debt increased 7.9 percent to P6.417 trillion as of end-June from P5.947 trillion a year ago, the Bureau of the Treasury said Wednesday.
The end-June debt figure also widened 1.1 percent from the previous month.
Data showed 35 percent or P2.231 trillion were sourced externally while 65 percent or P4.186 trillion were borrowed domestically.
“NG domestic debt amounted to P4.186 trillion, a P49.06 billion or 1.2 percent increment from the previous month’s level. The increase in domestic debt was primarily due to the net issuance of government securities amounting to P48.72 billion and peso depreciation that increased the value of onshore dollar bonds by P0.34 billion,” the Treasury said.
The peso breached the 50 a dollar level on June 20, 2017 at 50.10, triggered by markets’ anticipation of another round of interest rate hike by the US Federal Reserve. The peso posted its weakest level in more than 10 years on July 19 at 50.94 a dollar.
Domestic debt increased 9.3 percent to P4.186 trillion from P3.828 trillion a year ago, while foreign debt rose 5.2 percent to P2.231 trillion from P2.12 trillion.
“For the month, the increment was largely due to the impact of peso depreciation against the US dollar amounting to P30.53 billion which more than offset the upward revaluation of third currency-denominated debt amounting to P5.13 billion and net repayments worth P2.49 billion,” the Treasury said.
National government-guaranteed obligations decreased by P0.45 billion or 0.1 percent month-on-month to P493.18 billion. The reduction was principally due to net repayments on both external and domestic guarantees amounting to P1.05 billion and P1.78 billion, respectively, alongside the P1.58 billion effect of third currency revaluation.
These more than offset the P3.97 billion effect of the weaker peso. From the end-December 2016 level, NG guarantees went down by P20.49 billion or 4 percent.