The national government's total outstanding debt has reached P16.09 trillion as of the end of November 2024, from P70.7 billion in October, after foreign loans grew faster than domestic loans, a report from the Bureau of the Treasury (BTr) said.

BTr said the peso depreciation against the US dollar mainly contributed to the higher debt, as the local currency weakened from P58.198 per dollar to P58.602.

Loans from domestic sources grew by 0.3 percent to P10.92 trillion month-on-month, representing nearly 68 percent of the total debt.

Foreign loans rose faster

Meanwhile, foreign loans rose faster by 0.8 percent to P5.17 trillion, although its share was smaller at 32 percent.

The national government's net issuance of domestic debt securities reached P30.67 billion, while the weaker peso added P1.15 billion.

Compared to end-December 2023, domestic debt as of last month rose by nine percent or P903.73 billion.

Meanwhile, the higher external debt reflected the P35.61-billion effect from the peso depreciation.

The government however saved P5.06 billion due to favorable third-currency movements relative to the US dollar.

External debt up

External debt rose by 12.4 percent from the level in December 2023.

Department of Finance (DoF) Secretary Ralph Recto told media last month that the government aims to reduce foreign borrowings to 10 percent.

He added that the DoF is studying possible issuances of Yen, Euro, and Sukuk or Islamic bonds.