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Strong demand for government securities issued in the Philippines resulted in a 0.99 percent rise in the national government’s total outstanding debt as of May to P16.92 trillion, according to a report by Philippine News Agency.
Data released by the Bureau of the Treasury (BTr) on Thursday showed that the bulk, or 69.6 percent, of the outstanding debt consists of domestic borrowings, and the balance of 30.4 percent, foreign borrowings.
Total domestic debt as of May reached PHP11.78 trillion, up by PHP189.96 billion from the previous month.
Government debt papers issued in May totaled PHP190.87 billion, but the BTr said this was offset by the PHP0.91 billion downward valuation after the peso strengthened against the US dollar.
On the other hand, total foreign debt during the same period declined by PHP23.76 billion to PHP5.14 trillion.
The drop was traced to the net payment of foreign debt amounting to PHP3.55 billion and the impact of the stronger peso, which lowered the value of foreign liabilities.
The BTr said domestic debt remains higher compared to foreign obligations as the government prefers domestic fund sources to help manage foreign exchange risks and boost the local capital market.
“The government remains committed to its prudent debt management strategy, ensuring borrowings are strategically aligned with fiscal objectives and overall macroeconomic stability,” it said.
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