SUMMARY
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MANILA, Philippines – The national government’s outstanding debt as of end-November 2015 jumped by 4.1% from the previous year due to the increase in both foreign and domestic loans, the Bureau of the Treasury (BTr) reported Wednesday, January 6.
The government’s outstanding debt stood at P5.95 trillion ($126.37 billion) as of end-November, P236 billion ($5.01 billion) higher than the P5.72 trillion ($121.41 billion) recorded as of the same period in 2014. It declined by 0.1% or P5.09 billion ($108.03 million) relative to the end-October 2015 level.
The national government’s domestic debt amounted to P3.9 trillion ($65.58 million), a 2.8% increase from the previous year’s level, although 0.1% down compared to the amount recorded as of end-October.
The outstanding external debt, meanwhile, stood at P2.06 trillion ($43.75 billion), a 6.7% hike from its level in 2014, while reflecting a decrease of 0.1% compared to the end-October period.
The Philippine government is set to borrow P674.8 billion ($14.32 billion) this year to cover the fiscal deficit and pay the principal of the country’s loans.
The reduction in domestic obligations from the previous month was due to the net redemption of government securities amounting to P2.51 billion ($53.29 million), the BTr said, which was slightly tempered by the P0.1 billion ($2.12 billion) upward adjustment in the peso value of foreign currency domestic debt due to currency depreciation.
Overall, the government estimates that the outstanding national debt this year will reach P6.42 trillion ($136.33 billion). With a projected population of 103.2 million this year, this means that every Filipino will owe P62,191 ($1,320.68).
Peso depreciation
The Philippine peso depreciated from P46.90 ($0.996) as of end-October 2015 to P47.10 ($1.00) in end-November 2015.
The BTr said the depreciation of the local currency against the US dollar raised the peso value of debt by P8.78 billion ($186.51 million).
The external debt portfolio still went down due to the combined effect of net repayments and the depreciation of third-currencies against the US dollar amounting to P5.17 billion ($109.22 million) and P6.34 billion ($134.68 million), respectively. – Rappler.com
$1 = P47.09
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