Gov’t debt hits P6.43 trillion at end of August

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Facade of the Bureau of Treasury at Intramuros, Manila on September 15, 2014.
Facade of the Bureau of Treasury at Intramuros, Manila — BW FILE PHOTO

INCREASED BORROWING from domestic and foreign lenders, as well as a weaker peso, pushed government debt to P6.43 trillion at the end of August, the Bureau of the Treasury (BTr) said.

The debt stock rose 0.73% from the end of July.

Year-on-year, government debt grew 7.6%.

The Treasury bureau said that the rise in debt was due to “domestic net issuance and external loan availments,” on top of the peso’s weakening against the dollar.

The peso value used to estimate the August total was P51.17 to the dollar, against P50.5 in July.

The running debt total is equivalent to 98.54% of the programmed P6.526 trillion outstanding debt this year.

Debt from domestic sources was estimated at P4.15 trillion – about 64.5% of the total – up 0.1% from a month earlier.

The government issued securities worth P5.01 billion in August.

Year-on-year, debt from domestic sources grew 6.9%.

Foreign debt meanwhile expanded 1.8% month-on-month to P2.28 trillion.

“The increase was primarily due to P10.36 billion in net availment, the P29.66 billion impact of peso depreciation against the dollar and net appreciation of third currencies amounting to P1.01 billion, the BTr said.

Year-on-year, foreign debt rose 8.8%.

Guaranteed obligations rose 0.5% from the end of July to P497.54 billion, also due to the peso depreciation.

“These more than offset net repayments on both domestic and external guarantees amounting to P2.34 billion and P0.12 billion, respectively,” the Treasury said.

Year-on-year, guaranteed debt fell 10.2%.

The government plans to maintain an 80-20 borrowing ratio in favor of domestic sources. – Elijah Joseph C. Tubayan