Government debt jumped P689 billion or 11 percent to a record P6.88 trillion in March from P6.19 trillion a year ago, following the issuance of Panda bonds and as the peso fluctuated against other major currencies.
Data from the Treasury also showed the debt stock increased P58 billion or 0.85 percent from P6.82 trillion in February, as the peso sank to 52.25 against the US dollar as of end-March from 52.07 a month earlier.
The Treasury said in a statement Tuesday that of the total stock, 35.08 percent or P2.413 trillion were sourced externally while 64.92 percent or P4.465 trillion were borrowed domestically.
Domestic debt increased 0.8 percent month-on-month to P4.46 trillion in March. It was also up 12.6 percent from P3.97 trillion a year ago.
“The increment was predominantly due to the net issuance of government securities amounting to P35.82 billion and peso depreciation. Domestic debt has risen by P24.52 billion or 0.55 percent since the beginning of the year,” the Treasury said.
External debt hit P2.41 trillion in March this year, or 0.93 percent higher than P2.39 trillion in February and 8.6 percent higher than P2.22 trillion in March 2017.
“Increment for the month was due to the combined effect of peso depreciation and the upward adjustment in third currency-denominated debt amounting to P8.26 billion and P1.72 billion, respectively,” the Treasury said.
Net issuance in March amounted to P12.34 billion, including the successful inaugural issuance of Panda bonds worth $233 million in China.
The Treasury said that compared with the end-2017 level, the government’s external debt increased by P201.94 billion or 9.13 percent.
Government’s guaranteed obligations decreased by P1.86 billion or 0.37 percent month-on-month to P501.82 billion in March.
“The reduction in national government guarantees was due to net repayments on both domestic and foreign guarantees amounting to P1.33 billion and P2.28 billion, respectively,” the Treasury said.
“These outpaced the foreign exchange revaluation of foreign guarantees [local and third currencies] amounting to P1.03 billion and P0.72 billion, respectively,” it said.
Data showed that from the end-December 2017 level, national government guarantees went up by P23.71 billion or 4.96 percent.