government debt

Pandemic pushes PH gov’t debt above P9 trillion in June 2020

Ralf Rivas
Pandemic pushes PH gov’t debt above P9 trillion in June 2020

President Rodrigo Roa Duterte talks to the people after holding a meeting with the Inter-Agency Task Force on the Emerging Infectious Diseases (IATF-EID) core members at the Malago Clubhouse in Malacañang on July 21, 2020. ROBINSON NIÑAL JR./PRESIDENTIAL PHOTO

Of the total outstanding debt stock, 32% or P2.864 trillion are external while 68% or P6.19 trillion are domestic debt

The Philippines’ outstanding debt breached the P9-trillion mark in June, as the government borrowed more to finance programs for the coronavirus crisis.

The Bureau of the Treasury (BTr) said on Wednesday, July 29, that outstanding debt hit P9.054 trillion, 1.8% higher than end-May and 17.1% higher than end-December. (READ: Duterte’s loans vs coronavirus and why PH might need more)

Of the total outstanding debt stock, 32% or P2.864 trillion were sourced externally while 68% or P6.19 trillion are domestic debt.

Domestic debt went up 2.6% from May, due to issuances of domestic government securities. Domestic debt has increased by P1.062 trillion or 20.7% since the beginning of the year.

External debt inched up 0.3% in June from May. Moreover, external financing registered a net inflow of P413.6 billion from January to June, while debt repayment reached P113.46 billion. (READ: [ANALYSIS] Duterte’s new COVID-19 loans: Need we worry?)

From the start of the year, external debt has increased by P260.33 billion or 10%.

The debt-to-gross domestic product, or borrowings relative to the size of the economy, is expected to rise to 50% in 2020, while the budget deficit is projected to go up to 8.1%. – Rappler.com

Ralf Rivas

A sociologist by heart, a journalist by profession. Ralf is Rappler's business reporter, covering macroeconomy, government finance, companies, and agriculture.