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HomeUncategorizedPH debt swells to P12.09 trillion

PH debt swells to P12.09 trillion

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MANILA, PHILIPPINES — The national government’s outstanding debt increased further in February, reaching a new high of P12.09 trillion.

The 0.5 percent, or P63.82 billion, increase from January’s P12.02 trillion was “due to currency fluctuations and net financing from both local and external sources,” according to a statement issued by the Bureau of the Treasury on Thursday.

“For February, the increment in external debt was due to the impact of peso depreciation against the USD (US dollar) amounting to P17.91 billion and the net availment of external obligations amounting to P3.25 billion. These more than offset the P2.74 billion reduction caused by adjustments in other foreign currencies,” said the Treasury.

The majority, or 69.6 percent, was borrowed locally, with the remainder (30.4 percent) coming from outside sources.

Local debt increased by 0.5 percent to P8.41 trillion at the end of February 2022, up from P8.36 trillion the previous month, while external debt increased by 0.5 percent to P3.68 trillion from P3.66 trillion.

Total outstanding debt was P10.4 trillion a year ago, with P7.36 trillion in domestic obligations and P3.04 trillion in foreign debt.

“These more than offset the P2.74 billion reduction caused by adjustments in other foreign currencies,” the Treasury added.

The issuance of P44.89 billion in local government securities was primarily responsible for the increase in local debt.

Government obligations stood at P416.2 billion as of the end of February, down from P416.2 billion in January and the same month in 2021. According to the Treasury, the government settled domestic and external guarantees totaling P4.07 billion and P3.12 billion, respectively.

As of the end of 2021, the national debt stood at P11.7 trillion, or 60.5 percent of economic output measured in GDP. The debt-to-GDP ratio has reached its highest level in 16 years.

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