Gov’t debt up 4.6% to P5.3T

MANILA, Philippines - Government’s outstanding debt increased 4.6 percent to P5.31 trillion in April due to higher borrowings from domestic sources.

Data from the Bureau of Treasury showed that 65 percent of the total or P3.44 billion came from domestic creditors while the balance of 35 percent or P1.87 trillion came from foreign debt.

Domestic debt went up 14 percent due to the P32.6 billion net issuance of government securities and the P200 million net effect on multicurrency retail treasury bonds of the dollar and euro appreciation against the peso.

Foreign borrowings, on the other hand, declined by nine percent as a result of foreign exchange rate adjustments. The net depreciation of third currencies against the dollar reduced the peso value of NG foreign debt by P11.1 billion.

The decrease was partially offset by the depreciation of the peso and net availment which amounted to P4.6 billion and P600 million in additional debt. 

A P500 million adjustment was also included due to the late receipt of availment from foreign creditors.

The 65:35 domestic to external debt ratio is in line with the government’s strategy of taking advantage of the local market’s strong liquidity and limiting foreign borrowings.

The total guaranteed debt of the government slid to P475 billion from the end-March 2013 level of P480 billion.  The decline was attributed to the combined effects of the P800 million net repayment as well as third currency net depreciation against the dollar which reduced the value of guaranteed foreign debt by P5.2 billion.

According to the Bureau of Treasury, local currency depreciation against the dollar tempered the decline by P800 million along with a P300 million adjustment due to the late receipt of availment.

Domestic guaranteed debt was unchanged during the period.