NG debt rises almost 11 trillion from last year

The national government’s debt stock rose by almost a trillion pesos in March this year on the back higher borrowings particularly from the domestic market to support the Duterte administration’s funding program for infrastructure projects.

Based on the Bureau of the Treasury report yesterday, the total outstanding debt of the national government stood at 17.802 trillion at end-March this year, higher by 13 percent or 1923.3 billion, compared with 16.879 trillion in the same month last year.

Of the total debt stock, 66.6 percent was borrowed from local creditor, while the remaining 33.4 percent was sourced from the offshore markets.

As of March 2019, local debt increased by 16 percent to 15.196 trillion from 14.465 trillion in the same period last year, while foreign obligation reached 12.605 trillion, higher by 8.0 percent compared with 12.413 trillion in the previous year.

Month-on-month, the outstanding debt also rose, which the treasury said due to currency adjustments and net issuance of government securities.

The March figure was higher by five percent than the previous month’s 17.451 trillion.

Meanwhile, the total national government guaranteed obligations increased by 1.3 percent month-on-month to 1479.67 billion in March due to the net issuance of domestic guarantees amounting to 12.79 billion and currency fluctuations on both local and third currencies, which increase the peso value of external guarantees amounting to 14.73 billion and 10.42 billion, respectively.

Meanwhile, net repayments on external guarantees trimmed 11.64 billion. From the end-December 2018 level, total guaranteed debt has decreased by 17.92 billion or 1.6 percent.