The total outstanding debt of the Philippine government declined in September by P80.9 billion to P14.27 trillion due mainly to net repayments of both domestic and foreign debts during the month.
Foreign debt accounted for nearly 32 percent of Philippine government obligations and 68 percent are owed to domestic lenders.
The domestic debt stock stood at P9.73 trillion at end September, down by P56.8 billion compared to the level in August due to net redemption of government securities. Domestic debt issuances for the month totaled P121.1 billion while redemption amounted to P177.9 billion.
The peso’s depreciation against the US dollar had minimal effect on debt stock valuation at only P0.01 billion. The US dollar at the end of September was worth P56.660 compared with P56.651 as of end-August.
From the end of 2022, however, domestic debt in September increased by P526.0 billion.
Foreign debt of the national government was worth P4.53 trillion in September, down by P24.1 billion from August due to favorable third currency fluctuations and net repayment of foreign loans. The outstanding external debt for September was reduced by P8.0 billion due to the net repayment of foreign loans and P16.9 billion from the depreciation of third currencies against the US dollar. Meanwhile, peso depreciation against the US dollar added P0.7 billion.
The external debt in September was, however, higher by P323.8 billion from the end-December level.
Total NG guaranteed obligations in September decreased by P4.4 billion from August, or a total P362.22 billion.
The decline in the level of guaranteed debt was attributed to the net repayment of both domestic and external guarantees amounting to P1.6 billion and P1.4 billion, respectively. In addition, the value of third currency denominated guarantees went down by P1.3 billion, due to currency adjustments, offsetting the P0.03 billion additional debt caused by peso depreciation against the US dollar.
Year-to-date, the national government guaranteed obligations decreased by P36.8 billion from end 2022.
