PH debt hits P13T in end-August

Total liabilities of the national government (NG) rose by 11 percent to P13.02 trillion as of end-August due to the issuance of domestic securities and currency adjustments, the Bureau of the Treasury (BTr) reported on Friday.

Bulk or 68.7 percent of the liabilities is accounted for by those sourced from domestic creditors while the balance of 31.3 percent was sourced from overseas.

Total domestic debt as of August reached P8.94 trillion, which is P111.21 billion higher than the same period a year ago.

The BTr traced the jump in the domestic liabilities last August to net issuance of P109.43 billion worth of government securities and the P1.78 billion impact of weakening of the peso against the US dollar.

“Since the beginning of the year, domestic debt portfolio has increased by P772.98 billion or 9.5 percent due to continued reliance on domestic borrowing to lessen the impact of currency fluctuations,” it said.

The external debt as of end-August this year reached P4.08 trillion, up by P22.43 billion compared to the end-July 2022 level.

The BTr attributed the increase in foreign currency-denominated liabilities to the impact of weaker peso, which amounted to P62.24 billion.

Since the start of the year, external liabilities rose by P520.03 billion compared to the end-2021 level “primarily due to local- and third-currency fluctuations that increase the peso value of foreign-denominated obligations.”