PH debt hits new record at P12.79T

The amount of debt owed to the national government rose by more than 290 billion pesos, hitting a new record of 12.79 trillion pesos by the end of June this year, according to data from the Treasury Office (BTr).

In a statement on Friday, the bank attributed the growth to “net of domestic and foreign loan issuances as well as currency adjustments.”

Of the total, 68.5 percent was domestic debt.

“The net issuance of 96.30 billion pesos of government securities and the impact of the local currency depreciation against the US dollar is 5.36 billion pesos,” the Treasury said, resulting in a 1.2 percent increase in domestic debt to 8.76 trillion pesos from P8. .66 trillion.

Since the end of 2021, domestic debt has seen a slight increase of 596.70 billion pesos, or 7.3 percent.

Get the latest news


Delivered to your inbox

Subscribe to daily newsletters from the Manila Times

By registering with an email address, I acknowledge that I have read and agree to the Terms of Service and Privacy Policy.

The bureau also noted that due to “the impact of the local currency depreciation against the US dollar of 186.94 billion pesos and the net benefit from external financing of 43.18 billion pesos; offsetting the net effect of 35.72 billion pounds. Depreciation of liabilities denominated in third currencies against the US dollar,” the debt widened The country’s external affairs increased by 5.1 percent to 4.02 trillion pesos from 3.83 trillion pesos.

The bank said that commercial loans accounted for 55.4 percent of the total external debt, while multilateral and bilateral loans accounted for 34.2 and 10.5 percent of this liability, respectively.

The exchange rate used to calculate the data was P54.97 to $1, which is less favorable than the P52.41 to $1 used in May. The rate was P48.70: $1 a year ago.

At the end of June of the previous year, there were 11.16 trillion pesos of total outstanding debt, of which 7.93 trillion pesos came from domestic borrowing and 3.22 trillion pounds from external sources.

By the end of 2021, the total debt had grown to 11.73 trillion pesos, thanks to external loans of 3.56 billion pesos and 8.2 billion in domestic borrowing.

Meanwhile, at the end of June this year, the volume of government-guaranteed debt rose by 3.6 percent to 413.92 billion pesos due to net domestic guarantees of 9.34 billion pesos and the impact of the local currency depreciation against the US dollar. 10.44 billion pesos.

These “offset the impact of third currency fluctuations of 4.60 billion pesos and net repayment on external guarantees of 0.97 billion pounds,” the office said.

The outstanding debt is expected to reach 13.41 trillion pounds this year, of which 4.40 trillion pounds are domestic liabilities and 4.1 trillion pounds are external liabilities.

The Development Budget Coordination Committee targets the debt-to-GDP ratio to return to normal from this year’s level of 61.8 percent to 61.3 percent by 2023; to 60.6 percent by 2024; 59.3 percent by 2025; 55.7% by 2026; and 52.5% by 2027.

Related Posts

Leave a Reply

Your email address will not be published.