The national government posted outstanding debt 1.5 percent higher in February amounting to P6.208 trillion, from only P6.115 trillion the previous month, with the bulk of the loans obtained from domestic creditors, the Bureau of the Treasury (BTr) said.
According to data from the BTr, the core government’s outstanding debt for the month expanded by 4.5 percent compared to the same month in 2016, which amounted to P5.940 trillion.
At this level, the national government debt was estimated at some 42 percent of local output, measured as the GDP.
Finance Undersecretary Gil S. Beltran said the national government debt at end-2016 equaled 42.1 percent of GDP, sharply better than the national government debt equal to 44.7 percent of GDP in 2015.
Of the total outstanding debt, domestic debt accounted for P3.985 trillion, or 64 percent, while external debt amounted to P2.222 trillion, or 36 percent.
The locally sourced debt reflected an expansion of 0.8 percent, or P31.93 billion, compared to the January 2017 figure of P3.953 trillion. Year-on-year, the domestic debt showed an increase of 3.5 percent, compared to only P3.850 trillion registered in the same month in 2016.
“The increment was primarily due to the net issuance of government securities amounting to P31.68 billion, and the effect of peso depreciation on the value of onshore dollar bonds amounting to P0.25 billion,” the BTr said.
Year-to-date growth in domestic debt was 1.3 percent, or P51 billion, from the December 2016 level of P3.934 trillion.
The national government external debt of P2.222 trillion in February, on the other hand, grew by 2.8 percent, or P60.725 billion, from end-January 2017 of only P2.162 trillion. Year-on-year, external debt rose by 6.3 percent, or P132.279 billion, from P2.090 trillion in 2016.
“For the month, peso depreciation against the US dollar increased the peso value of external debt by P21.64 billion, alongside net availment worth P39.31 billion. These more than offset the impact of third currency depreciation against the US dollar, amounting to P0.22 billion,” the BTr added.
The national government external debt position has increased by 3.1 percent, or P66.78 billion, from end-December 2016 level of only P2.156 trillion.
Year-to-date, total outstanding the national government debt expanded by 1.9 percent, or P117.775 billion, with end-December 2016 level at P6.090 trillion.
Total national government guaranteed obligations amounted to P521.826 billion in February, an increase by 0.5 percent, or P2.715 billion, from end-January level of P519.111 billion. Year-on-year, it posted a 14.8-percent increase, or P67.286 billion, from the P454.540 billion in February 2016.
Indebtedness backed by the full faith and credit of the national government become direct obligations the moment the borrowing entity is unable to pay the obligation.
“The increment on national government guarantees was due to the effect of currency fluctuations and net availment on external guarantees amounting to P3.48 billion and P0.21 billion, respectively. These far outpaced the net repayment on domestic guarantees amounting to P0.97 billion,” the Btr said.
Broken down, domestic guaranteed obligations totaled P232.160 billion, shrinking by 0.4 percent, or P968 million, from the January level of P233.128 billion. Year-
on-year, this showed a growth of 60.7 percent, or P87.654 billion, from the recorded P144.506 billion in 2016.
External guaranteed debt amounted to P289.666 billion, expanding by 1.3 percent, or P3.683 billion, compared to January level of P285.983 billion. Year-on-year, this posted a decrease of 6.6 percent, or P20.368 billion, from the 2016 level amounting to P310.034 billion.
Year-to-date, the national government guarantees increased by 1.6 percent, or P8.15 billion, from the December 2016 level of only P513.673 billion.