Outstanding debt of the national government dropped 1.4 percent in October to P6.069 trillion from the previous month, partly on foreign exchange fluctuations, the Treasury said Wednesday.
“The drop in external debt level was due to the effect of third currency depreciation against the US dollar that resulted in reduction of the peso value of third currency liabilities by P10.75 billion and net repayments amounting to P20.12 billion. Peso devaluation over the period had a minimal effect amounting to P0.14 billion,” the agency said.
The agency said on a year-on-year basis, government debt rose 1.9 percent, or P111.60 billion from P5.957 trillion recorded in October 2015.
Data from the Treasury showed the peso depreciated 3.38 percent to 48.485 against the US dollar in October from 46.9 a dollar a year earlier.
“However, NG liabilities decreased slightly by P17.36 billion or 0.3 percent from its end-September level due to currency adjustments and net repayment of external debt,” the Treasury said.
Debt coursed through the domestic market as of end-October 2016 increased 0.5 percent to P3.917 trillion from P3.898 trillion recorded in the same period last year, following the increase in domestic debt portfolio due to the net issuance of government securities.
Of the total domestic debt, P598 million were loans while the balance was government securities.
External debt climbed 4.5 percent year-on-year to P2.151 trillion in October. This was P81.34 billion higher than P2.059 trillion recorded in the same period a year ago.
“The drop in external debt level was due to the effect of third currency depreciation against the US dollar that resulted in reduction of the peso value of third currency liabilities by P10.75 billion and net repayments amounting to P20.12 billion. Peso devaluation over the period had a minimal effect amounting to P0.14 billion,” the Treasury said.
Meanwhile, national government’s guaranteed debt increased 27.1 percent to P560.652 billion from P440.996 billion recorded a year ago.
Guaranteed obligations declined 0.8 percent or P4.3 billion on a month-on-month basis.