PHL gov’t debt balloons to P6.5T in October on weak peso

Friday, December 8th, 2017. Filed under: News Philippine News

MANILA, Dec 2 (Mabuhay) — The national government’s outstanding debt stood at another record-high P6.501 trillion in October brought about by a weaker peso, data released by the Bureau of Treasury showed.

The government’s end-October outstanding debt reached P6.501 trillion, up 7.1 percent or P431.905 billion more than the P6.069-trillion debt recorded in the same period last year. It is also up by 0.9 percent or P57.192 billion, from the P6.444 trillion in end-September.

“The effect of local currency depreciation on foreign currency debt considerably affected the end-month level of national government debt,” the Treasury said.

The local currency traded within its weakest level in 11 years during the month of October, hitting P51.770:$1 on October 24.

Despite the higher government debt, the country’s debt ratio as of the third quarter is at 41.7 percent of gross domestic product.

“This continues the downward trajectory for the year after the slight increase to 42.4 percent as of second quarter from the end-2016 level of 42.1 percent,” the Treasury said.

Domestic debt amounted to P4.216 trillion, up 0.7 percent or a P27.57-billion increment from the end-September level.

External debt amounted to P2.285 trillion, P29.62 billion or 1.3 percent higher than the previous month.

“This was due to the weakening of the peso against the US dollar which translated to a P37.98 billion increase in the level of external debt,” the Treasury said. (MNS)

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