The country’s obligations rose to a record P12.79 trillion as of end June, breaching the record in April of P12.76 trillion. The bulk of such debts were sourced locally and the balance from abroad.
The country’s debt stock has risen by 9.1 percent since 2022 started after the government borrowed P1.06 trillion more. Total debt stock is P12.79 trillion as of end June, beating the previous record of P12.76 trillion in April.
The Bureau of Treasury said 68.5 percent of that come from domestic source and the balance from foreign creditors.
Between May and June, the debt pile rose by 2.4 percent from P12.49 trillion “due to the net issuance of domestic and external loans and currency adjustments.”
Year on year, the debt stock jumped by 14.6 percent from P11.16 trillion, the Business World reported.
As of end-June, outstanding local borrowings reached P8.77 trillion, higher than the P8.67 trillion logged in May.
The BTr attributed the increase to the P96.3 billion it borrowed through government securities, and the P5.36 billion impact of peso depreciation against the dollar.
The peso depreciated against the greenback from P52.412 as of end-May to P54.970 as of end-June, the BTr said.
Domestic debt was 10.4 percent higher than the P7.94 trillion a year earlier, and 7.3 percent higher than the end-December 2021 level of P8.17 trillion.
Most of the domestic debt stock still came from government securities with P8.77 trillion in June, up 18.5% year on year, and 1.2 percent month on month.
External debt
Outstanding external debt jumped by 24.7 percent year on year to P4.02 trillion at end-June. It inched up 5.1 percent month on month and increased by 13.1 percent from the end-December 2021 level.
Broken down, it consisted of P1.8 trillion in foreign loans and P2.23 trillion in global bonds.
“The increment in external debt was attributed to the impact of local currency depreciation against the USD amounting to P186.94 billion and the net availment of external financing amounting to P43.18 billion; offsetting the P35.72 billion effect of net depreciation against the US dollar on third-currency denominated obligations,” the Treasury said.
Meanwhile, overall guaranteed debt rose month on month by 3.6 percent to P413.93 billion as of end-June, but 5.6 percent lower than the P438.6 billion as of June 2021.
This was attributed to P9.34 billion in net availment of domestic guarantees and the impact of local currency depreciation amounting to P10.44 billion.
“These offset the effect of third-currency fluctuations amounting to P4.60 billion and net repayments on external guarantees amounting to P0.97 billion,” the BTr said.
The government borrows from local and external sources to help fund a budget deficit capped at P1.65 trillion this year, equivalent to 7.6 percent of gross domestic product.
The country’s debt level reached 63.5 percent of gross domestic product (GDP) at the end of the first quarter, from 54.6 percent as of end-2020 and 39.6 percent as of-end 2019.
It is expected to steadily drop to 61.8 percent by end-2022, and to 52.5 percent by 2028.
Tags: #BuTreasury, #outsfandingdebtsasofJune, #pesodepreciaiton, #securities