THE Philippines’ sovereign debt climbed higher in April following the depreciation of the Philippine peso and the government’s net financing during the period, data released by the Bureau of the Treasury (BTr) on Thursday, May 30, showed.
The national government’s debt stock stood at P15.017 trillion as of end-April, 0.61% higher than the P14.925 trillion as of end-March, and 7.95% higher than the P13.911 trillion as of end-April 2023.
“[This is] due to government net financing and the impact of local currency depreciation on the valuation of foreign-currency-denominated debt,” the BTr said.
The Philippine peso closed on April 30, 2024 at P57.76:$1, reflecting a depreciation of P1.52 from the finish of P56.24:$1 on March 27, 2024, the last trading day of the month. It has since depreciated even further to a fresh 18-month low of P58.635:$1 on Thursday.
Broken down, the end-April debt stock was 31.36% external debt, equivalent to P4.708 trillion, up 1.30% from P4.648 trillion in March, and 5.74% higher than the P4.453 trillion the year earlier. This was composed of P2.251 trillion in loans, and P2.457 trillion in external debt securities.
“Although there was a net repayment of P32.91 billion in foreign loans within the month, the considerable depreciation of the peso caused a P109.31 billion upward adjustment in the local valuation of US dollar-denominated debt,” the BTr said.
This was partly offset by the P15.91-billion downward adjustment due to the opposite movement of third-currency debt.
The government’s guaranteed obligations stood at P350.06 billion, marking a P10.02-billion or 2.89% increase from its end-March 2024, on the back of the P7.54-billion net availment of domestic guarantees, and the P3.80-billion impact of the peso depreciation on foreign-currency-denominated guarantees.
Third-currency adjustments against the US dollar, meanwhile, trimmed P1.32 billion in the government’s debt.
Domestic debt, meanwhile, accounted for 68.64% or P10.308 trillion, reflecting a 0.30% increase from P10.277 trillion the month prior and an 8.99% increase from P9.457 trillion the year earlier.
Bulk or P10.308 trillion of the domestic debt was made up of government securities, while the remaining P0.16 trillion were in the form of loans. (GMA Integrated News)
