The outstanding debt of the national government (NG) stood at P6.115 trillion in January this year, higher by 0.4 percent compared to the P6.090 trillion a month earlier. The increase developed on the back of net domestic debt issuances and by so-called third currency appreciation impacts on foreign currency-denominated debt.
According to the Bureau of the Treasury (BTr), NG debt increased by P25.118 billion compared to the December 2016 level of only P6.090 trillion. Year-on-year, NG debt expanded by 3.6 percent, or P215.199 billion. NG debt in 2016 aggregated P5.900 trillion.
“The 0.4-percent, or P25.12 billion, increment from the previous month’s level is due to domestic net issuance and the impact of third currency appreciation on foreign currency-denominated debt,” the BTr said in a statement.
Of the total outstanding debt for the month, 35 percent, or P2.162 trillion, were borrowed from external markets while 65 percent, or P3.953 trillion, was owed to domestic creditors.
Domestic debt in January alone amounted to P3.953 trillion, up 0.5 percent or P19.062 billion from end-2016 level of only P3.934 trillion. Year-on-year, domestic debt expanded by 3.4 percent, or P129.050 billion compared to the P3.824 trillion, recorded in January 2016.
“For the month, net issuance of government securities was worth P19 billion, while the stronger peso reduced the value of onshore dollar bonds by a mere P.01 billion,” the BTr said.
NG foreign debt in January rose by 0.3 percent, or by P6.06 billion, to P2.162 trillion and compares rather favorably against the previous month’s P2.156 trillion. Year-on-year, NG outstanding debt expanded by 4.1 percent, or P86.141 billion, compared to P2.076 trillion in January 2016.
“For January external debt escalation was principally due to the impact of third currency appreciation against the US dollar amounting to P14.04 billion, outpacing net repayment and peso appreciation worth P7.46 billion and P0.52 billion, respectively,” the BTr said.
Total NG guaranteed obligations for the month amounted to P519.111 billion, a 1.1-percent, or P5.44 billion, increase relative to end-2016 contingent obligations of P513.673 billion. Year-on-year, guaranteed NG debt shrunk by 3.4 percent, or P18.170 billion, compared to January 2016 levels of P537.281 billion.