BUSINESS
Advocates Philippines
National Government Debt At P14 Trillion
As of end-May 2023, the National Government (NG) of the Philippines has reported a total outstanding debt of P14.10 trillion. This represents an increase of P185.40 billion or 1.3% from the previous month. The growth in debt can be attributed to net issuances of both domestic and external debt, as well as the depreciation of the local currency against the US dollar.
Out of the total debt stock, 32.0% was sourced externally, while the remaining 68.0% were domestic borrowings. NG's domestic debt amounted to P9.59 trillion, reflecting a P130.67 billion or 1.4% increase compared to the end-April 2023 level. This increment was primarily driven by the net issuance of government securities, which amounted to P129.11 billion. Additionally, the depreciation of the local currency against the US dollar contributed to a P1.56 billion increase in the value of onshore foreign currency-denominated securities. Year-to-date, domestic debt has risen by P380.13 billion or 4.1%.
NG's external debt reached P4.51 trillion, showing a P54.73 billion or 1.2% increase from the previous month. The growth in external debt was mainly driven by the net availment of external loans amounting to P10.05 billion. Furthermore, the depreciation of the local currency against the US dollar contributed to a P59.70 billion increase. However, third-currency adjustments against the US dollar tempered the value of foreign currency debt by P15.02 billion.
NG's external debt has increased by P297.56 billion or 7.1% since the end of December 2022.
On the other hand, the total NG guaranteed obligations decreased by P0.98 billion or 0.3% month-over-month, reaching P379.71 billion as of end-May 2023.
The decline in guaranteed debt was primarily due to net repayments of external guarantees amounting to P6.70 billion and third-currency adjustments amounting to P0.91 billion. However, these reductions were partially offset by the net issuance of domestic guarantees amounting to P4.16 billion and the impact of local currency depreciation relative to the US dollar amounting to P2.47 billion. Since the end of December 2022, NG guaranteed debt has decreased by P19.33 billion or 4.8%.
The National Government continues to face the challenge of managing its debt levels while ensuring the sustainable growth of the economy.
Out of the total debt stock, 32.0% was sourced externally, while the remaining 68.0% were domestic borrowings. NG's domestic debt amounted to P9.59 trillion, reflecting a P130.67 billion or 1.4% increase compared to the end-April 2023 level. This increment was primarily driven by the net issuance of government securities, which amounted to P129.11 billion. Additionally, the depreciation of the local currency against the US dollar contributed to a P1.56 billion increase in the value of onshore foreign currency-denominated securities. Year-to-date, domestic debt has risen by P380.13 billion or 4.1%.
NG's external debt reached P4.51 trillion, showing a P54.73 billion or 1.2% increase from the previous month. The growth in external debt was mainly driven by the net availment of external loans amounting to P10.05 billion. Furthermore, the depreciation of the local currency against the US dollar contributed to a P59.70 billion increase. However, third-currency adjustments against the US dollar tempered the value of foreign currency debt by P15.02 billion.
NG's external debt has increased by P297.56 billion or 7.1% since the end of December 2022.
On the other hand, the total NG guaranteed obligations decreased by P0.98 billion or 0.3% month-over-month, reaching P379.71 billion as of end-May 2023.
The decline in guaranteed debt was primarily due to net repayments of external guarantees amounting to P6.70 billion and third-currency adjustments amounting to P0.91 billion. However, these reductions were partially offset by the net issuance of domestic guarantees amounting to P4.16 billion and the impact of local currency depreciation relative to the US dollar amounting to P2.47 billion. Since the end of December 2022, NG guaranteed debt has decreased by P19.33 billion or 4.8%.
The National Government continues to face the challenge of managing its debt levels while ensuring the sustainable growth of the economy.
Jul 5, 2023
