Government debt hits record P15.35 trillion

CEBU, Philippines — The National Government’s total debt hit P15.35 trillion as of end-May this year, accelerating by 2.2% at P330.39 billion from the preceding month owing to the weakening of the local currency, the Bureau of Treasury said in a press statement released on July 4, 2024.

In May, the Philippine peso slipped to P58.27 against the US dollar, hitting its lowest point since November 8, 2022, when it was at P58.275, as reported by the Bankers Association of the Philippines.

Of the total debt, 31.96% is to foreign lenders, while 68.04% is domestic debt. The domestic debt rose to P10.44 trillion, up by P134.34 billion or 1.3% from April 2024.

This uptick is attributed to the issuance of government securities and the peso’s devaluation.

On the external front, the debt surged to P4.90 trillion, marking a P196.04 billion increase or 4.2% hike from April 2024.

This growth is driven by fresh foreign loans and the reevaluation of US dollar debt, somewhat countered by movements in other currencies.

By the end of May 2024, the NG’s guaranteed obligations shrank by P5.85 billion (1.6%) to P350.20 billion, influenced by repayments and currency adjustments.

Since December 2023, guaranteed obligations have modestly risen by P0.76 billion (0.2%). — Renee Ross Villariasa