Government debt jumped in the first month of the year owing to higher domestic borrowings and weakening of the peso against the US dollar, data from the Bureau of the Treasury showed.
As of January 2023, the national government’s outstanding debt stock stood at P13.698 trillion, up 14 percent from P12.029 trillion a year ago. Month-on-month, it also rose by 2.1 percent from P13.418 trillion last December.
As of January 2023, the national government’s outstanding debt stock stood at P13.698 trillion, up 14 percent from P12.029 trillion a year ago. Month-on-month, it also rose by 2.1 percent from P13.418 trillion last December.
Based on the Treasury data, 68.5 percent of the total debt portfolio of the government were domestic borrowings, while 31.5 percent was sourced overseas.
At end-January, domestic loans increased 12 percent to P9.384 trillion from P8.367 trillion in the same month last year. It was also 1.9 percent higher compared to the end-December 2022 level of 9.208 trillion.
According to the Treasury, the increase was “primarily due to net availment of domestic financing amounting to P179.16 billion offsetting the P2.61 billion effect of local currency appreciation against the US dollar on foreign denominated onshore securities.”
Meanwhile, external debt of the government accelerated by 18 percent to P4.313 trillion at end-January from P3.662 trillion a year earlier. Month-on-month, it grew 2.4 percent from December’s 4.21 trillion.
“The increase in NG’s [national government] external obligation for January was brought on by the P186.56-billion net availment of foreign loans and P10.36 billion impact of third- currency adjustments against the US dollar,” the Treasury said.
The peso’s weakness also pushed up foreign debt, which averaged at 54.571 against the greenback in January from 51.135 in the previous year. However, the local currency has slightly recovered from December’s 55.815 level.
Lastly, the total national guaranteed obligations decreased by P5.21 billion or 1.3 percent in January to P393.84 billion.
“The lower level of guaranteed debt was due to the net repayment of both domestic and external guarantees amounting to P1.12 billion and P0.21 billion, respectively,” the Treasury said.
“Peso appreciation against the US dollar further trimmed P4.31 billion. These more than offset the net appreciation of third- currency denominated guarantees against the US dollar amounting P0.42 billion,” the bureau added.
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