NG debt rises in Nov.

Published January 2, 2020, 12:00 AM

by manilabulletin_admin


The national government’s outstanding debt rose in November last year owing higher borrowings, data from the Bureau of the Treasury showed yesterday.

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As of November 2019, the total debt obligations of the national government stood at ₱7.709 trillion, higher by 7.2 percent compared with ₱7.195 trillion in the same period in the previous year.

Of the total debt stock, 66.4 percent were from the domestic market, while the remaining 33.6 percent were held by foreign creditors.

Based on the treasury report, the national government’s local debt rose by 8.7 percent to ₱5.115 trillion from ₱4.708 trillion a year ago, while offshore debt increased by 4.3 percent from ₱2.487 trillion to ₱2.594 trillion.

However, the national government’s November total debt declined month-on-month due to net redemptions of domestic government securities.

The treasury said that the outstanding debt at end-November dropped 2.5 recent from ₱7.906 trillion in October.

Domestic debt was also 3.6 percent lower from ₱5.305 trillion after the treasury’s net redemption of government securities amounting to ₱189.15 billion and effect of stronger peso on onshore dollar bonds.

In November, the peso averaged 50.758 against the greenback, slighter stronger than ₱50.769 in the previous month.

Meanwhile, external debt likewise declined in November by 0.3 percent from ₱2.601 trillion in October due to the combined effect of local and third-currency foreign exchange adjustments which decreased the value of foreign debt by ₱0.56 billion and ₱6.18 billion, respectively.

Similarly, total guaranteed obligations decreased by 0.6 percent month-on-month to ₱475.00 billion in November.

The lower level of guarantees was due to foreign exchange movements which reduced the value of external guarantees by ₱1.61 billion. In addition, net repayment of domestic and external guarantees further trimmed ₱330 million and ₱720 million, respectively.

In 2019, the Department of Budget and Management estimated that the national government’s outstanding debt would hit ₱7.85 trillion.