The outstanding debt of the national government fell to P5.714 trillion in October compared to
its level the previous month, as government
borrowings in the first 10 months this year similarly slowed to only P214.18 billion.
Figures from the Bureau of the Treasury (BTr) show the outstanding debt of the national government amounting to P5.714 trillion during the month, or P9.4 billion lower than its month-ago level.
The diminution of government debt was also reflected in the decline in government borrowings in the first 10 months, amounting to P214.18 billion, or 31 percent lower than borrowings incurred in the same period last year,
totaling P312.55 billion.
For January to October, gross external borrowings totaled P95.18 billion, while debt payments made during the period brought the net external borrowings to P15.52 billion.
For the same period, gross domestic borrowings amounted to P201.84 billion, while payments made to domestic creditors for the period brought the net domestic borrowings to P198.66 billion.
The total outstanding debt of the national government decreased because of net redemption in government securities and net repayment on the external debt, the BTr said in a statement. Net redemption of government securities held by domestic creditors amounted to P3.3 billion in October, while the external debt contracted by P6.1 billion because of net repayment and the strengthening of the local currency against the US dollar.
The BTr said this was in line with the government’s strategy to rely more on domestic loans to avoid foreign- exchange risks, and to extend the maturity periods of its loans to free up more cash.
“Debt indicators highlight the steady improvement in the composition of national-government debt. The high concentration of debt denominated in local currency helps mitigate the impact of foreign-exchange fluctuations on 67.5 percent of the whole portfolio. Furthermore, the borrowing strategy of issuing mid- to long-term bonds has maintained the average maturity of national-government debt at 10.08 years to help minimize refinancing risks,” the BTr said.