Govt debt reaches P10.99T at end-April

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The Bureau of the Treasury (BTr) reported on Thursday that the government’s outstanding debt reached a new high of P10.99 trillion at the end of April due to growing domestic and overseas liabilities.

 

The sum was up 2 percent, or P217.48 billion, from P10.77 trillion at the end of March, according to Treasury figures.

 

Foreign creditors contributed 28.9 percent of the total, while local creditors contributed 71.1 percent.

 

Domestic debt climbed by 0.9 percent to P7.81 trillion at the end of March, up from P7.74 trillion at the end of March, while external debt expanded by 4.9 percent to P3.17 trillion.

 

There were P8.60 trillion in outstanding commitments a year ago, with P5.86 trillion in domestic debt and P2.73 trillion in international debt.

 

According to the Treasury, the increasing domestic debt is due to “net issue of government securities.”

 

The “net availment of foreign loans amounting to P163.01 billion, including P146.16 billion from the issuance of global bonds” was blamed for the higher external debts.

 

“Further adjustments include the impact of third-currency appreciation against the US dollar which added P10.91 billion while local-currency appreciation trimmed P24.21 billion,” the Treasury added.

 

For the most recent statistics, a foreign-exchange rate of P48.15 to the dollar was used, compared to P48.54 at the end of March. The exchange rate was P50.44:$1 a year ago.

 

Meanwhile, government-guaranteed debt dropped by 0.2 percent, or P1.07 billion, to P434.74 billion.

 

“The lower level of guaranteed debt was due to the net redemption of both local and foreign guaranteed obligations amounting to P0.75 billion and P0.08 billion, respectively,” the BTr said.

 

Exchange rate movements in the Philippines reduced the value of external guaranteed liabilities by P1.57 billion, while third-currency appreciation increased the value of guarantees by P1.33 billion, according to the bureau.

 

The Budget department has said the government’s outstanding debt could reach P11.98 trillion this year.

 

BY MEYNARD DELA CERNA

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