Government's outstanding debt jumps to P6.821-T as of end-February

MANILA, Philippines — The national government’s outstanding debt soared to a fresh record-high of P6.821 trillion in February, partly due to the peso’s slump against the dollar that raised the value of the country’s foreign loans for the month, the Bureau of Treasury reported Wednesday.

The state’s outstanding obligations spiked by 1.4 percent from P6.726 trillion posted in January.

Domestic debt, which accounted for 64.95 percent of the total stock, amounted to P4.429 trillion, 0.92 percent lower from the January 2018 level.

On the other hand, external debt stood at P2.391 trillion, increasing by 4.2 percent from a month ago.

“The slight decrease in domestic debt was due to the net redemption of government securities amounting to P1.28 billion which were partially tempered by peso depreciation,” the BTr said.

“The growth in external debt was driven by net availments on foreign loans and bond issuance as well as forex fluctuations,” it added.

The peso, the worst performing currency in Asia so far, has been hovering near a 12-year low.

The government borrows from local and foreign sources to fund its budget deficit.