Gov’t debt hits P5.451T

MANILA, Philippines - The government’s outstanding debt reached P5.451 trillion as of June, up almost seven percent from the P5.101 trillion  recorded in the same period last year, the Bureau of Treasury (BTr) reported yesterday.

The latest figure was also 1.6 percent higher than the previous month’s P87 billion.

Of the total government debt stock as of June,  P3.5 trillion or 64.2 percent was borrowed from domestic lenders. The balance of 35.8 percent or P1.95  trillion was borrowed from foreign lenders.

Local debt increased by 14.8 percent to P3.502 trillion mainly due to the government having issued more Treasury bills (T-bills) and bonds compared to the volume that was repaid.

On the other hand, foreign borrowings, done largely by tapping loans from development lending institutions, went down by 4.9 percent to P1.903 trillion. 

This was in line with the government’s strategy of relying more on local sources of credit amid low interest rates.

Total government-guaranteed debt went up to P491 billion, up by P11 billion or 2.5 percent month on month. The depreciation of the peso as well as third currency appreciation against the dollar expanded the peso value of debt by P10 billion and P4 billion, respectively.

External guaranteed debt dropped by P2 billion due to net repayments while domestic guaranteed debt remained unchanged for the period.

Government debt paper pegged in dollars amounted to P1.02 trillion while yen and euro loans stood at P42 billion and P28 billion, respectively.