Phl debt hits new record-high at P12.89T

Local debt totaled P8.83 trillion, up 0.7 percent or higher by P65.07 than the end-June 2022 level of P8.8 trillion.

September 4, 2022

The national government’s debt now stood at P12.89 trillion as of July 2022, the Bureau of Treasury said Saturday, attributing it to the net issuances of domestic and external loans as well as currency adjustments.

July 2022’s liability is a fresh record high, growing 0.8 percent or P96.09 billion compared to the end-June 2022 level of P12.79 trillion, and rising by 11 percent or by P1.277 trillion from the end-July 2021 outstanding debt of P11.61 trillion.

Since the end-December 2021, the government debt expanded by 9.9 percent or P1.16 trillion.

The Philippine debt record as of the end-July 2022 comprises mostly domestic borrowings at 68.5 percent, while the remaining 31.5 percent were international borrowings.

However, the debt-to-gross domestic product ratio improved to 62.1 percent of the second quarter of the year from 63.5 percent of the first quarter, notwithstanding, still above the internationally accepted “manageable” threshold.

Meanwhile, local debt totaled P8.83 trillion, up 0.7 percent or higher by P65.07 than the end-June 2022 level of P8.8 trillion.

“For July, the increase in domestic debt resulted from the net issuance of government securities amounting to P64.33 billion and the P740 million impact of local currency depreciation against the United States dollar,” the BTr said in a statement, adding that the Philippine peso denigrated against the US dollar from P54.970:$1 as of end-June 2022 to P55.322:$1 as of end-July 2022.

Records showed that since 2022 started, domestic debt has grown by P661.77 billion or 8.1 percent.

Foreign debt, on the other hand, stood at P4.06 trillion, up 0.8 percent or higher by P31.02 billion than the end-June 2022 level of P4.024 trillion.

“The increment in the level of external debt was attributed to the impact of local currency depreciation against the US dollar amounting to P25.77 billion and net availment of external financing amounting to P6.00 billion. These were tempered by the P750 million effect of third-currency depreciation against the US dollar,” the BTr further stated.


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