Government debt decreased by P139.8 billion at the end of August, primarily due to recent appreciation of the peso and net repayments of foreign debt.

As of August 2024, the national government's total outstanding debt stood at P15.55 trillion, reflecting a 0.9-percent decline from the end of July.

According to the Bureau of the Treasury's (BTr) report on overall debt, 69.40 percent is attributed to domestic loans, while 30.60 percent consists of foreign loans.

In August, domestic debt reached P10.79 trillion, marking a 0.4-percent increase, or P38.46 billion, from July.

The Treasury said the rise was driven by P45.05 billion in new government securities, which was partially offset by a P6.59 billion decrease due to peso appreciation affecting dollar-denominated securities.

Since December of last year, the government's domestic debt has increased by 7.7 percent, or P773.68 billion.

Conversely, external debt reached P4.76 trillion, reflecting a 3.6-percent decline, or P178.25 billion, from the end of July.

The Treasury attributed this decrease to peso appreciation, which reduced external debt by P194.90 billion, along with net repayments of P4.17 billion.

The peso averaged 56.179 against the US dollar in August, stronger than the previous month’s 58.488.

Data from the Treasury indicated that external debt has risen by 3.5 percent, or P160.25 billion, since January.

As of the end of August, the government's guaranteed obligations totaled P364.03 billion, representing a 5.6-percent increase, or P19.24 billion, from the end of July. This increase is primarily due to new guarantees amounting to P24.33 billion from the Power Sector Assets and Liabilities Management Corp. (PSALM).

Additionally, the BTr noted that the value of third-currency loans rose by P1.38 billion. However, the strengthening of the peso reduced the overall amount by P6.47 billion, mitigating the total impact. Since December 2023, the government's guaranteed obligations have increased by 4.2 percent, or P14.59 billion. (Derco Rosal)