Peso depreciation pushes government debt over P16 trillion


The national government debt breached the P16-trillion mark due to peso depreciation against the US dollar, the Bureau of the Treasury reported.

The government's total outstanding debt stood at P16.02 trillion as of end-October 2024, a 0.8 percent or P126.95 billion increase from the end-September 2024 level.

According to the Treasury, the increase was primarily driven by the valuation impact of peso depreciation against the US dollar from 56.017 in September to 58.198 at end-October 2024.

Of the total debt stock, 67.98 percent is composed of domestic securities, while 32.02 percent consists of external obligations.

At end-October, domestic debt amounted to P10.89 trillion, a 0.4 percent or P46.42 billion lower than the end-September 2024 level.

The decline was primarily due to the P52.65 billion net redemption of government securities, partially offset by the P6.23 billion escalation in peso conversion of US dollar-denominated domestic debt brought about by the weakened peso.

Domestic debt has risen by 8.7 percent or P871.91 billion from the end-December 2023 level.

Foreign debt, meanwhile, rose 3.5 percent to P5.13 trillion from the end-September 2024 level.

The Treasury said 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 impact of peso depreciation against the US dollar has increased external debt by P193 billion; however, this has been tempered by the P40.10 billion effect of favorable third-currency movements relative to the US dollar.

Since the start of the year, external debt has risen by 11.6 percent or P532.08 billion compared to the end-December 2023 level.