NG debt rises anew in July to over 17 trillion

The national government’s outstanding nominal debt rose by double-digits in July this year owing to higher borrowings from the local market and the stronger US dollar, the Bureau of the Treasury said yesterday.

At end-July this year, the national government’s total debt stock in the domestic and offshore markets settled at 17.043 trillion, up by 10 percent compared with 16.385 trillion in the same month last year.

Of the total debt, 65.32 percent was borrowed domestically, while the remaining 34.68 percent was sourced from external lenders.

Domestic debt amounted to 14.6 trillion as of July, an increase of 11 percent from 14.146 trillion a year before, while foreign obligations jumped 9.1 percent year-on-year to 12.443 trillion from 12.238 trillion.

In July, the peso weakened to 153.16 against the US dollar from 150.5 in the same month last year.

Month-on-month, the national government’s debt also rose by slightly 0.4 percent from 17.016 trillion in June due to net availments on both domestic and foreign obligations.

Domestic debt increased by 0.5 percent during the month from 14.579 trillion owing to the net issuance of government securities amounting to 121.57 billion, but was slightly tempered by the stronger peso.

According to the Treasury, the stronger local currency, which averaged at 153.4 against the greenback, diminished the value of onshore dollar bonds by 10.12 billion.

External debt also rose by 0.20 percent month-on-month in July from 12.437 trillion due to net availments of foreign loans amounting to 120.68 billion.

The Treasury also said that the increase was offset by currency fluctuations on both dollar and third-currency denominated debt amounting to 111.14 billion and 13.60 billion, respectively.

Total national government guaranteed obligations, meanwhile, decreased by 0.90 percent month-on-month to 1483.90 billion in July.

The reduction in guarantees was due to the net redemption of both domestic and external guarantees amounting to 11.14 billion and 10.21 billion, respectively.

The decline was also attributed to the currency fluctuations on both dollar and third-currency denominated guarantees amounting to 11.36 billion and 11.55 billion, respectively.