The national government’s total outstanding debt inched up to PHP18.16 trillion as of end-February, the Bureau of the Treasury (BTr) reported Wednesday, citing continued financing activities and shifts in global market conditions.
In a news release, the BTr said the figure was 0.14 percent, or PHP25.74 billion, higher than the end-January level.
“The modest uptick underscores the government’s stable and well-managed debt position amid evolving global financial conditions,” it said.
Domestic borrowings continued to account for the bulk of the debt stock, making up 68.7 percent or PHP12.48 trillion, while external obligations stood at PHP5.68 trillion.
“This was largely driven by the continued prioritization of domestic financing to protect the government’s debt position from unfavorable external developments,” the BTr said.
Domestic debt rose by 1.25 percent, or PHP154.39 billion, largely due to the government’s fundraising activities through the issuance of treasury bills (T-bills) and treasury bonds (T-bonds).
The BTr added that the “impact of currency movements on foreign currency-denominated domestic securities remained minimal, reducing valuations by PHP3.75 billion.”
Meanwhile, foreign debt declined by 2.21 percent, or PHP128.65 billion, as favorable exchange rate movements reduced the peso value of dollar- and other foreign currency-denominated obligations.
“These valuation gains more than offset net external loan availment amounting to PHP7.78 billion,” it said.
Despite the decline in external debt, the government continued to tap international financing sources, highlighted by the successful issuance of USD2.75 billion in triple-tranche global bonds with maturities of 5.5, 10, and 25 years.
“This reflects sustained investor confidence in the country’s credit profile and the NG’s ability to tap international markets on reasonable terms,” the BTr said. (Joann Santiago-Villanueva/PNA)
