PH debt down by 0.6% to P14.27 trillion as of end-Sept. 2023

The Philippines’ sovereign debt saw a slight decline as of end-September 2023 due to the government’s repayments of both local and foreign borrowings during the period.

Data released by the Bureau of the Treasury (BTr) on Tuesday showed the national government incurred a total outstanding debt of P14.27 trillion, down 0.6% or P80.9 billion lower than the P14.35 trillion debt stock recorded as of end-August 2023.

The Treasury attributed the month-on-month decline "due to net repayments of both domestic and external obligations for the month.”

The bulk or 68.2% of the government's running debt pile was sourced domestically, while the balance of 31.8% was from foreign borrowings.

In particular, the Philippines’ domestic debt stood at P9.73 trillion, down 0.6% or P56.77 billion lower than the P9.79 trillion seen in the prior month.

The contraction in local debt was attributed to “the net redemption of government securities.”

This, as domestic debt issuance for the month totaled P121.1 billion while redemption or repayment amounted to P177.9 billion, “resulting in a net repayment of P56.8 billion.”

Meanwhile, external debt totaled P4.53 trillion as of end-September 2023, down 0.5% or P317.87 billion lower than the P4.56 trillion foreign debt recorded as of the prior period.

The Treasury said the lower external debt stock during the period was “due to favorable third currency fluctuations and net repayment of foreign loans.”

“The outstanding external debt for September was reduced by P8.0 billion due to the net repayment of foreign loans and P16.9 billion from the depreciation of third currencies against the US dollar,” the BTr said. —VAL, GMA Integrated News