October 4, 2022

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NG debt rises to record P12.76 trillion

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THE NATIONAL Government’s (NG) outstanding debt rose to a record-high P12.76 trillion at the end of April, as it continued to ramp up borrowings to support economic recovery from the pandemic.

Preliminary data from the Bureau of the Treasury (BTr) showed outstanding debt inched up by 0.7% from end-March’s P12.68 trillion “due to the net issuance of government securities to both local and external lenders and the depreciation of the local currency against the US dollar.”

Year on year, the debt stock jumped by 16.1% from P10.99 trillion.

The BTr said the debt pile has risen by 8.8% since the year started, after the government borrowed P1 trillion more.

Of the outstanding debt, the bulk or 70% was obtained domestically, while the rest was from foreign creditors.

Domestic debt stood at P8.94 trillion at end-April, 0.8% up from end-March due to P66.3 billion in net availment of domestic financing. This was 14.4% higher than P7.8 trillion a year earlier, and 9.4% higher than the end-December 2021 level of P8.17 trillion.

Most of the domestic debt stock still came from government securities with P8.64 trillion in April, up 18.8% year on year and 0.8% month on month.

Meanwhile, outstanding external debt jumped by 20.4% year on year to P3.83 trillion at end-April. It inched up 0.4% month on month, and increased by 7.6% from the end-December 2021 level.

“For the period, the increment to external debt was due to the net availment of external loans amounting to P28.56 billion and the effect of peso depreciation against the US dollar amounting to P31.5 billion. This was tempered by adjustments in third currencies amounting to P43.86 billion,” the Treasury said.

The National Government’s guaranteed debt rose by 0.6% month on month to P413.43 billion at end-April due to the net availment of both domestic and external guarantees.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the record debt reflected government borrowings made before…

Neil

2022-06-02 12:34:35

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