Public debt increases to P5.642 trillion

1 November 2013

The national government outstanding debt increased by P461.4 billion in August this year due to higher domestic borrowings.

Data from the Bureau of Treasury showed yesterday that the national government’s debt increased by 9 percent year-on-year as of August to P5.642 trillion from P5.181 trillion.

The increase in total debts was primary due to a 16 percent spike in domestic obligations, which stood at P3.647 trillion as of August from P3.135 trillion in the same period last year.

The treasury bureau said that the increase was in line with government’s bias towards domestic financing to lessen its exposure to foreign exchange risks.

On the other hand, the national government’s foreign debt at end-August declined by 2.5 percent to P1.994 trillion from P2.045 trillion a year ago.

Month-on-month, the national government debt grew by 3.3 percent from the end-July level.

Of the total debt, 64.6 percent was from local creditors while the remaining 35.4 percent was sourced from domestic creditors.

In August, the national government domestic debt rose 4.2 percent from the recorded end-July level due a net issuance of 147 billion in Retail Treasury Bonds which aims to mobilize savings and take advantage of the domestic market’s immense liquidity.

On the other hand, external debt increased month-on-month due to currency adjustments by 1.7 percent, equivalent to P34 billion, over the same period.

The national government guaranteed debt, meanwhile, amounted to P500 billion as of August, or 1.6 percent higher month-on-month.

Of the total, 28.7 percent was domestic guaranteed debts, while 71.3 percent was external guaranteed obligations.

Similar to external debt, the national government guaranteed obligations increased as a function of currency adjustments.