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Sun. Jul 14th, 2024

PH debt will rise to P15.02 trillion by April 2024

By Vaseline May31,2024

The total outstanding debt of the national government increased to P15.02 trillion as of end-April 2024 due to net financing and the impact of the depreciation of the Philippine peso against the US dollar.

The Bureau of Treasury (BoT) said the outstanding debt as of end-April 2024 is 0.61 percent or P91.50 billion higher than the level at end-March 2024.

The agency said the main factor for the increase was the depreciation of the local currency against the US dollar, from P56,260 at the end of March to P57,583 at the end of April.

Of the total debt burden, 31.36 percent or P4.71 trillion is foreign debt, while 68.64 percent or P10.31 trillion is domestic loans.

Domestic debt for April increased by 0.30 percent or P31.01 billion from March.

Since January, domestic debt increased by P290.57 billion or 2.90 percent, while year-on-year growth was recorded at P850.66 billion or 8.99 percent.

“This month, the increase was due to the net insurance of government bonds of P27.23 billion and the P3.78 billion effect of the depreciation of foreign currency-denominated domestic debt,” the agency said.

External debt also increases by 1.30 percent or P60.49 billion, rising by P110.38 billion or 2.40 percent compared to the end-December 2023 level, and by P255.42 billion or 5.74 percent year-on-year .

“While there was a net repayment of P32.91 billion in foreign loans within the month, the significant depreciation of the peso caused an upward adjustment of P109.31 billion in the local valuation of US dollar-denominated debt, partially offset by the P15 A downward adjustment of $0.91 billion caused by the opposite movement of third currency debt,” it added.

The Department of Finance also recorded an increase of P10.02 billion or 2.89 percent in the national government’s guaranteed obligations, for a total of P356.06 billion.

It said the increase was caused by the net use of domestic guarantees amounting to P7.54 billion and the impact of the depreciation of the peso on foreign currency-denominated guarantees amounting to P3.80 billion.

It noted that the third currency’s adjustment against the U.S. dollar declined by P1.32 billion. (TPM/SunStar Philippines)

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