THE peso’s weakening pushed the national government’s (NG) outstanding debt to a new record high of P16.02 trillion in October, the Bureau of the Treasury reported on Tuesday.
A total of P126.95 billion was added to the debt tally from September’s P15.89 trillion, and the count was also P1.54 trillion higher than the year-earlier P14.48 trillion.
The increase was attributed to the “valuation impact of peso depreciation against the US dollar from 56.017 at end-September 2024 to 58.198 at end-October 2024.”
Of the total debt stock, 32.02 percent was borrowed abroad while 67.98 percent was sourced domestically.
Domestic debt hit P10.89 trillion as of end-October, lower than the P10.93 trillion recorded a month earlier but up from P9.90 trillion from last year.
The drop was said to be primarily due to a net redemption of P52.65 billion in government securities that was, however, partially offset by US dollar-denominated domestic debt rising by P6.23 billion in peso terms.
Compared to the end of last year, domestic debt was P10.01 trillion or 8.7 percent higher. Year on year, it was up by P987.50 billion or 10.0 percent.
External debt, meanwhile, totaled P5.13 trillion as of end-October, P173.37 or 3.5 percent higher month on month from P4.96 trillion in September.
The rise was a larger 11.6 percent, or P532.08 billion, from December’s P4.6 trillion and 12.1 percent, or P551.96 billion, compared to the year-earlier P4.58 trillion.
“The increase was driven by net foreign loan availments totaling P20.47 billion, as well as foreign exchange movements, which added P152.90 billion to external debt,” the Treasury said.
“The impact of peso depreciation against the US dollar has increased external debt by P193.00 billion; however, this has been tempered by the P40.10 billion effect of favorable third-currency movements relative to the US dollar,” it added.
Guaranteed obligations, meanwhile, rose by P38.90 billion or 10.4 percent to P411.76 billion as of end-October from a month earlier.
The increase was driven by P35.85 billion in net availments of domestic guarantees and the P6.15-billion effect of the peso’s depreciation against the dollar, which was partially limited by a P3.10-billion downward revaluation in external guarantees linked to third currency movements.
Guaranteed debt was 17.8 percent, or P62.32 billion, higher from the end of December and also 14.1 percent, or P50.76 billion higher year on year.
Outstanding NG debt is expected to hit P16.06 trillion this year, up from the previous projection of P15.84 trillion.
The forecast for 2025 is P17.35 trillion, with domestic debt seen accounting for the bulk at P11.98 trillion. The remaining P5.38 trillion will come from external debt.
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