Business News

PHL debt further climbs to ₱14.15 trillion as of end-June

MANILA — The national government’s outstanding debt inched up by 0.4% to ₱14.15 trillion by the end of June, the Bureau of the Treasury (BTr) reported.

At the start of the year, the government debt was P13.42 trillion.

The amount was up by ₱51.31 billion from the previous month.

The treasury bureau said domestic borrowings still made up the majority (68.6%) of total debt stock amounting to ₱9.7 trillion, while the rest or ₱4.45 trillion are from foreign loans.

Foreign debt fell by 1.4%, or ₱63 billion, as the peso’s appreciation offset new loan inflows.

Domestic debt rose by 1.2%, or ₱114.3 billion, as the government issued more bonds to finance requirements.

Meanwhile, the BTr said the government’s total guaranteed obligations dropped by 2.6% or ₱9.98 billion to ₱369.73 billion as of end-June, due to net repayment of domestic and external guarantees amounting to ₱5.25 billion.

Since 2016, the Philippines has more than doubled its debt as it sought to finance big-ticket infrastructure projects and fund its pandemic response.

Government economists however have played down concerns over the growth in the country’s debt saying the issue remains manageable.