PHILIPPINES DEBT NEW RECORD HIGH HITS P16 TRILLION IN OCTOBER

Latest data from the Treasury showed that the national debt settled a new record high at P16.02 trillion as of end-October, the highest level to date (Photo courtesy of Reuters)

The Philippine government’s total outstanding debt climbed to 10.6 percent year-on-year to exceed the P16-trillion mark for the first time in October 2024, equivalent to about 60.3 percent of the local economy, as a weak currency bloated the peso value of foreign liabilities.

According to the Bureau of the Treasury (BTr), the 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 from 56.017 at end-September 2024 to 58.198 at end-October 2024,” the BTr said.

While the domestic debt amounted to P10.89 trillion in end-October, a 0.4 percent lower than the end-September 2024 level. “The decline was primarily due by the P52.65 billion net redemption of government securities, partially offset by the P6.23 billion escalation in peso conversion of US dollar-denominated1 domestic debt brought about by the weakened peso.”

External obligations, on the other hand, pushed up to P5.13 trillion, higher by 3.5 percent or P173.37 billion compared with the preceding month and accounting for 32.02 percent of the total debt stock.

Meanwhile, national government-guaranteed obligations totaled P411.76 billion as of end-October 2024, reflecting a 10.4-percent increase from its end-September 2024 level. This resulted from P35.85 billion in net availments of domestic guarantees and the P6.15 billion effect of peso depreciation against the US dollar.

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 according to Finance Secretary Ralph Recto. 

Source: Philippine News Agency 

Be part of ImHenyo community!

Get featured by sharing your stories, news, and comments

Email us at [email protected]