NG debt rises slightly to 17.195 trillion in November
The national government’s (NG) total debt inched up in November last year owing to higher domestic borrowings to take advantage of strong market demand, the Bureau of the Treasury reported yesterday.
The treasury bureau reported that the national government’s outstanding debt reached 17.195 trillion as of November 2018, slightly higher by 0.4 percent compared with 17.167 trillion in the previous month.
Year-on-year, the total debt obligations rose 12 percent from 16.437 trillion owing to foreign exchange losses after the peso weakened to 152.39 against the US dollar from 150.34 a year ago.
Of the total debt stock, 65.4 percent was borrowed domestically, while remaining 34.6 percent was sourced from external sources.
Local debt amounted to 14.707 trillion, up by two percent compared with 14.62 trillion end-October 2018 level.
"For the month, the registered increase in domestic debt was due to the net issuance of government securities amounting to 188.33 billion as the committee fully awarded treasury bonds amid strong market demand,” the treasury said.
"This was slightly offset by the appreciation of the peso that decreased the value of onshore dollar bonds by 10.57 billion,” the bureau added.
For external debt, it amounted to 12.487 trillion, lower by 2.3 percent month-on-month due to the impact of the stronger peso along with net repayments on foreign obligations.
However, the treasury said the favorable offshore condition "was slightly tempered by the net appreciation of third-currency denominated external debt amounting to 10.21 billion."
Meanwhile, the total government guaranteed obligations declined by 2.7 percent month-on-month to 1471.80 billion in November.
"The reduction in NG guarantees was due to the impact of currency fluctuations on both dollar and thirdcurrency denominated external guarantees amounting to 16.22 billion and 10.75 billion, respectively,” the treasury said.
"While net availments on external guarantees added 10.13 billion, this was offset by the net redemptions of domestic guarantees amounting to 16.08 billion. From the end-December 2017 level, NG guarantees has decreased by 16.31 billion or 1.3 percent,” it added. (CSL)