PHILIPPINES OUTSTANDING DEBT LOWERED TO P15.55T IN AUGUST


Government debt decreased to P15.55 trillion at the end of August according to the Bureau of the Treasury (Photo courtesy of Reuters/BusinessWorld)
The national government's outstanding debt had dipped slightly in August to P15.55 trillion, as the peso strengthened and following payments for foreign obligations the Bureau of the Treasury (BTr) reported.
The Treasury said in a statement, “The decline was primarily due to the revaluation effect of peso appreciation and the net repayment of external debt."
From the Treasury’s latest data, the amount was 0.9 percent lower or P139.79 billion compared from July's P15.69 trillion. Nonetheless, the figure is still 8.4 percent higher than the P14.35 trillion debt in the same month last year.
At 69.4 percent, domestic debt continued to account for the bulk of the overall debt stock, while the remaining 30.6 percent consisted of external obligations. The domestic debt boosted in August because of a net issuance of government securities totaling P45.05 billion.
Adding that the rise was tempered by a P6.59-billion downward revaluation of dollar-denominated domestic securities due to the peso's appreciation. The domestic debt has risen by 7.7 percent or P773.68 billion and external debt hit P4.76 trillion that’s 3.8 percent down from end-July.
"The decline was brought about mainly by peso appreciation, which trimmed P194.90 billion, as well as net repayments of P4.17 billion, although stronger third-currencies added P20.82 billion in valuation effects," the Treasury said.
Furthermore, reflecting the Power Sector Assets and Liabilities Management Corp.’s availment of new guarantees worth P24.33 billion, the government’s guaranteed obligations increased by 5.6 percent to P364.03 billion.
The escalation in the valuation of the third-currency denominated component of P1.38 billion also contributed to the increase while favorable peso movement provided a downward offset of P6.47 billion.
Source: The Manila Times
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