Philippines debt hits P16 trillion as of end-October 2024

The Philippine government’s total outstanding debt passed the P16-trillion mark in October, due mainly to the impact of the depreciation of the peso against the US dollar, government data released on Tuesday showed.

Data from the Bureau of the Treasury (BTr) show that total outstanding debt stood at P16.020 trillion as of end-October, 0.8% or P126.95 billion higher than the P15.893-trillion balance as of end-September, and 10.6% or P1.539 trillion higher than the P14.480 trillion as of end-October 2023.

“The increase was primarily driven by the valuation impact of peso depreciation against the US dollar,” the BTr said, as the peso ended October at P58.198:$1 versus the P56.017:$1 at the end of September.

Domestic debt stood at P10.889 trillion as of end-October, marking a 0.4% or P46.42 billion decline from the previous month. This was attributed mainly to the P52.65-billion net redemption of government securities, which was partly offset by the P6.23-billion increase in peso conversion of dollar-denominated debt.

The external debt stood at P5.130 trillion, up by 3.5% or P173.37 billion from the previous month.

“The increase was driven by net foreign loan availments totaling P20.47 billion, as well as foreign exchange movements, which added P152.90 billion to external debt,” the BTr said.

The peso depreciation against the greenback boosted external debt by P193.00 billion, but this was tempered by the P40.10-billion effect of the appreciation of third-currency movements against the US dollar.

Obligations guaranteed by the national government totaled P411.76 billion, reflecting a 10.4% or P38.90 billion increase from end-September.

Net availments of domestic guarantees stood at P35.85 billion, while the peso depreciation contributed P6.15 billion, but this was partially offset by the P3.10-billion downward revaluation in external guarantees linked to third-currency movements.

Finance Secretary Ralph Recto in August said the country’s sovereign debt could balloon to as much as P20 trillion by the end of the term of President Ferdinand “Bongbong” Marcos Jr. in 2028.

Data from the Department of Budget and Management (DBM) show that the borrowing program for 2024 was pegged at P2.46 trillion, higher than the P2.207 trillion in the past year. — BM, GMA Integrated News