P14.48-T Phl debt new record high
Broken down, 68.38 percent of the overall debt came from domestic sources, with the remainder coming from foreign sources
Daily TribuneBroken down, 68.38 percent of the overall debt came from domestic sources, with the remainder coming from foreign sources
The Philippines' outstanding debt rose to a new record high in October following additional domestic and international borrowings to fund state financing requirements, the Bureau of the Treasury, or BTr, said Tuesday.
In a statement, BTr said the debt stock grew by 6.15 percent year-on-year to P14.48 trillion from P13.64 trillion in October 2022. Month-on-month, the country's debt increased by 1.49 percent from P14.27 trillion as of September 2023.
The increase in debt stock "reflected the net issuance and availing of domestic and external loans, as well as the revaluation effect of the peso depreciation against the US dollar," the bureau explained.
Broken down, 68.38 percent of the overall debt came from domestic sources, with the remainder from foreign sources.
The country's domestic debt reached P9.90 trillion, representing a 1.73-percent increase from P9.73 trillion by the end of September due to the government's issuance of debt securities to enhance its financial reserves.
The gross issuance of domestic debt for October reached P213.42 billion, while principal payments amounted to P45.68 billion, resulting in a net repayment of P167.75 billion.
The effect of local currency depreciation against the US dollar on the debt stock valuation was minimal, at only P0.23 billion.
Meanwhile, the treasury bureau attributed the increase in external debt to the net availment of foreign loans amounting to P33.52 billion and the P11.84 billion upward adjustment in valuation caused by the peso depreciation against the US dollar.
Rizal Commercial Banking Corp. chief economist Michael Ricafort attributed the new debt high to continued budget deficits, higher interest rates, the weaker peso exchange rate against the US dollar in recent years that increased the peso equivalent of the government's foreign debts, and the continued the increase in infrastructure spending.
He said that the national government's outstanding debt could still post new record highs for the coming months amid reduced maturities of government bonds in the fourth quarter (4Q) of 2023 up to February 2024.
"For the coming months, especially in 4Q 2023 up to February 2024, the relatively lower maturity of government debt (the repayment of which tends to reduce the national government outstanding debt) and any continuation of budget deficits that need to be financed could lead to additional/incremental borrowings that could, in turn, lead to a new record high for the outstanding national government debt," Ricafort said.