THE national government’s outstanding debt edged down in August as the peso strengthened and following payments for foreign obligations, the Bureau of the Treasury reported on Tuesday.
At P15.55 trillion, the amount was 0.9 percent lower compared to P15.69 trillion recorded at the end of July.
The decline was primarily due to “the revaluation effect of peso appreciation and the net repayment of external debt,” the Treasury said in a statement.
Domestic debt continued to account for the bulk of the overall debt stock at 69.4 percent. The remaining 30.6 percent consisted of external obligations.
A net issuance of government securities totaling P45.05 billion boosted domestic debt to P10.79 billion in August, the Treasury said, adding that the rise was tempered by a P6.59-billion downward revaluation of dollar-denominated domestic securities due to the peso’s appreciation.
Reckoned from the end of last year, domestic debt has risen by 7.7 percent or P773.68 billion, the Treasury added.
External debt, meanwhile, hit P4.76 trillion — 3.8 percent down from end-July.
“The decline was brought about mainly by peso appreciation, which trimmed P194.90 billion, as well as net repayments of P4.17 billion, although stronger third-currencies added P20.82 billion in valuation effects,” the Treasury said.
Year to date, external debt was up by 3.5 percent or P160.25 billion.
Guaranteed obligations, meanwhile, totaled P364.03 billion as of end-August 2024, rising 5.6 percent or P19.24 billion increase from a month earlier.
This was said to be due to Power Sector Assets and Liabilities Management Corp.’s availment of P24.33 billion in new guarantees and a P1.38-billion rise in the valuation of third-currency denominated debt.
The peso’s strengthening, however, “provided downward offset of P6.47 billion.”
The government’s guaranteed obligations increased by 4.2 percent or P14.59 billion, the Treasury said.
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