Outstanding debt increased by 6% to P7.73t in 2019

The government’s outstanding debt as of end-2019 stood at P7.731 trillion, up P438.79 billion or 6 percent from the end-2018 level, the Bureau of the Treasury said Wednesday.

In a statement, the Treasury said the figure was also P21.64 billion or 0.3 percent higher than the previous month’s level “primarily due to net availments and exchange rate adjustments.”

Of the total debt stock, 33.7 percent are external debt while 66.3 percent are domestic debt.

“The debt-to-GDP ratio improved to 41.5 percent from 41.9 percent a year ago, beating the program of 41.7 percent for the year. The improved debt-to-GDP ratio is a result of prudent cash and debt management backed by steady economic growth,” the Treasury said.

Domestic debt amounted to P5.127 trillion, P12.0 billion or 0.2 percent higher compared to the end-November 2019 level.

“For the month, domestic debt increased mainly due to the net issuance of government securities amounting to P11.96 billion and the P0.02 billion effect of peso depreciation on onshore dollar bonds. Year-over-year, domestic debt has increased by P350.74 billion or 7.3 percent,” it said.

The external debt of P2.603 trillion, meanwhile, was P9.67 billion or 0.4 percent higher than the previous month.

“For December, the increase in external debt was due to the net availment of foreign loans amounting to P2.51 billion and the combined effect of local and third-currency fluctuations which increased the value of foreign debt by P2.25 billion and P4.90 billion, respectively,” BTr said.

As of end- December 2019, external debt has increased by P88.05 billion or 3.5 percent from its end-December 2018 level.

Total government guaranteed obligations increased by P13.75 billion or 2.9 percent month-over-month to P488.75 billion in December.

“For the month, the higher level of guarantees was due to local and third-currency fluctuations that increased the value of external guarantees by P0.20 billion and P1.02 billion respectively, and the net issuance of domestic guarantees amounting to P13.85 billion,” it said.

This was tempered by the net repayment of external guarantees amounting to P1.32 billion. From the end-December 2018 level, total government guaranteed debt has increased by just P1.16 billion or 0.2 percent.

Topics: Outstanding debt , Bureau of the Treasury , debt-to-GDP ratio
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