Govt debt hits new high

THE national government's outstanding debt ballooned to a new record of P15.89 trillion in September due to continued borrowings, the Bureau of Treasury reported on Wednesday.

It remained at a «manageable» level, the Treasury said in a statement, «with the majority or 68.81 percent of the portfolio sourced from the country's robust domestic market.»

The «net availment of new external and domestic debt,» it added led to a «minimal increase» of 2.2 percent from the P15.55 trillion recorded in August.

The «strategic focus on local fundraising,» the Treasury continued, «allows the government to limit external risk exposure to only 31.19 percent of its debt portfolio, while enabling the development of the local bond market and providing Filipinos with quality investment vehicles to grow their savings.»

As of end-September, domestic debt was 1.3 percent, or P144.65 billion, higher than the P10.79 trillion recorded a month earlier.

«This was mainly driven by P145.11-billion net issuance of new government securities, which was slightly offset by a P460-million decrease in the value of US dollar-denominated securities due to the appreciation of the Philippine peso,» the Treasury said.

Compared to the end of last year, domestic debt was P918.33 billion or 9.2 percent higher, while year on year it rose by 12.3 percent or P1.20 trillion.

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External debt, meanwhile, totaled P4.96 trillion, 4.2 percent or P198.46 billion higher month on month, due to P200.89 billion in net foreign borrowings, which included P140.99 billion from new dollar bonds for general budget needs.

Favorable foreign exchange adjustments helped reduce overall external debt by P2.43 billion.

Since the beginning of the year, P358.71 billion or 7.8 percent was added to the external debt while year on year it was P422.73 billion or 9.3 percent higher.

Guaranteed obligations, meanwhile, rose by 2.4 percent or P8.83 billion to P372.86 billion as of end-September from a month earlier.

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«This was mainly driven by the P12.30 billion in new guarantees for the Power Sector Assets and Liabilities Management Corp. and the National Food Authority, as well as P940.0 million in upward revaluation of