MANILA, Philippines, March 5 ------ The issuance of domestic securities and the weakening of the peso pushed the country’s outstanding debt to a fresh high of P16.31 trillion in January, the Bureau of the Treasury said. Latest data from the Treasury showed that the national debt settled at P16.31 trillion as of end-January, its highest level to date. This is also 10 percent higher than the P14.79 trillion debt recorded in January 2024.
For January alone, the government added some P261.47 billion to the debt pile due to the net issuance of domestic securities, foreign loans and the effect of peso depreciation. At the onset of the New Year, the outstanding debt was already 94 percent of the 2025 debt expectation of a record P17.35 trillion. Nonetheless, the government maintained that such a level remains manageable and in line with the administration’s target to support economic development while ensuring fiscal sustainability.
The Treasury said 67.9 percent of the debt pile consisted of domestic borrowings while the remaining 32.1 percent was sourced externally. The country’s total domestic debt of P11.08 trillion went up by 1.41 percent on a monthly basis and jumped by nine percent from the P10.16 trillion incurred in January 2024. The increase was due to the net issuance of government securities at P152.17 billion, as gross borrowings of P270 billion surpassed repayments valued at P117.84 billion to partly finance the projected deficit for the quarter.
Similarly, the peso depreciated against the US dollar to P58.375 from the end-December level of P57.847. This resulted in an additional P1.51 billion in the total debt pile. External obligations, on the other hand, rose by 2.1 percent to P5.23 trillion month-on-month. It grew by 13 percent from P4.63 trillion on a yearly basis.
The Treasury attributed this to the P46.74 billion upward revaluation caused by local currency depreciation against the US dollar, as well as unfavorable movements in third currencies at P1.75 billion. External loan availment contributed P59.3 billion in January. The government’s guaranteed obligations barely went down to P346.27 billion. Net repayment of both domestic and external guarantees amounted to P1.55 billion and P250 million, respectively.
Source: philstar.com
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