Outstanding Philippine national government (NG) debt totalled P15.35 trillion in May, an increase of P330.39 billion, or 2.2 percent, from end-April level. This was primarily attributed to the impact of local currency depreciation on the value of NG’s foreign-currency denominated debt.
Of the total, approximately 32 percent is external debt amounting to P4.90 trillion while 68 percent is domestic debt totaling P10.44 trillion.
The domestic debt as of end-May increased by P134.34 billion, or 1.3 percent, compared to the level in April. The increase was due to the net issuance of government securities amounting to P131.66 billion, along with a P2.68 billion impact from the peso depreciation on foreign-currency denominated domestic debt. Year-to-date, domestic debt expanded by P424.91 billion, or 4.2 percent, and on a year-on-year basis it grew by P854.33 billion or 8.9 percent.
Meanwhile, NG external debt increased to P4.90 trillion by end-May, rising P196.04 billion, or 4.2 percent, compared to the level at end-April. The increase was traced to the P122.04 billion in net foreign loan availment and a P76.94 billion upward revaluation of US dollar-denominated debt. Third-currency movements provided a favorable effect, reducing the external debt by P2.94 billion.
Since end-December 2023, external debt has risen P306.42 billion or 6.7 percent, and on a year-on-year basis this increased by P339.15 billion or 7.4 percent.
NG guaranteed obligations, however, decreased by P5.85 billion from end-April and amounted to P350.20 billion at the end of May. The decline was attributed to net repayments on both domestic and external guarantees totaling P4.36 billion and P3.55 billion, respectively. Additionally, third-currency adjustments against the US dollar reduced obligations by P0.62 billion, offsetting the P2.68 billion increment caused by peso depreciation against the US dollar. Since end-December 2023, NG guaranteed obligations have slightly increased by P0.76 billion or 0.2 percent.
These figures reflect the Philippine government’s ongoing management of its debt profile amidst economic challenges and global financial dynamics, with efforts aimed at maintaining fiscal stability and sustainable economic growth.
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