OUTSTANDING government debt rose to P6.444 trillion in September as the Treasury borrowed more funds using peso-denominated securities, the bureau said on Friday.

Debts held by the national government rose from P6.432 trillion as of end-August, and was up 5.9% from a year earlier, the Bureau of the Treasury said in a statement.

“The increase in total debt was mainly due to domestic securities issuance for the month which more than offset the effect of currency revaluation on foreign currency debt,” the Treasury said in a statement.

Funds raised from domestic sources totalled P4.188 trillion, picking up from the P4.152 trillion at end-August on the back of an additional P36.797 billion raised from the issuance of government securities. The government floated seven and 10-year Treasury bonds that month.

The government borrows from both domestic and external sources to fund its budget deficit and support a growing economy. Between October and December, the state is looking to raise up to P150 billion by floating peso debt notes, lower than the P195 billion programmed between July-September.

Meanwhile, external debt slipped by 1.1% to P2.256 trillion in September compared with August, amid a decline in unsettled loans and foreign currency-denominated debt papers.

Foreign loans fell 1.7% to P870.106 billion, while the value of government securities issued overseas slipped by 0.7% to P1.385 trillion. The Treasury attributed the decline to the combined effect of a stronger peso alongside the appreciation of a host of currencies against the dollar.

Year-on-year, domestic borrowing rose by 7.3% against a 3.4% increase in external obligations.

On the other hand, guaranteed debt payments slipped to P489.064 billion as of end-September, 13.4% lower than the amount set aside the previous month. Exchange rate adjustments and revaluations brought the value down, the Treasury said. – Melissa Luz T. Lopez