NG debt increases anew in August to 17.104 trillion

The national government’s (NG) debt increased by double-digits in August this year due to higher local borrowings and stronger US dollar against the local currency, data from the Bureau of the Treasury showed yesterday.

The outstanding debt of the national government stood at 17.104 trillion at end-August this year, up by 10.5 percent compared with 16.431 trillion in the same month last year.

Of the total debt stock, 64.37 percent was borrowed from the domestic market, while the remaining 35.63 percent was secured from foreign sources.

Local debt amounted to 14.573 trillion, up by 10 percent compared with 14.151 trillion a year before. Month-on-month, domestic obligations declined by 0.6 percent from 14.6 trillion.

The decline in domestic debt was due to the net redemption of government securities amounting to 127.77 billion, but was slightly offset by the depreciation of the peso that increased the value of onshore dollar bonds by 1160 million.

Year-to-date, domestic debt increased by 2.96 percent.

Foreign debt, meanwhile, rose by 11 percent to 12.531 trillion in August from 12.279 trillion in the same month last year.

Month-on-month, external liabilities also jumped by 3.6 percent from 12.443 trillion in July due to net availments of foreign loans amounting to 172.3 billion including the successful issuance of Samurai bonds.

Currency fluctuations on both dollar and third-currency denominated debt added 114.48 billion and 11.10 billion, respectively. From the end-December 2017 level, external debt has increased by 1319.76 billion or 14.5 percent. Likewise, total guaranteed obligations of the national government increased by 11.07 billion month-on-month to 1484.97 billion in August due to currency fluctuations on both dollar and third-currency denominated guarantees amounting to 11.75 billion and 10.89 billion, respectively.

These were tempered by net redemption on domestic and external guarantees amounting to 11.27 billion and 10.30 billion, respectively. From the end-December 2017 level, guarantees have increased by 16.86 billion or 1.4 percent.