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Philippines: Government debt hits new high of P10.3 trillion in January
MANILA, Philippines — Total outstanding debt of the national government rose to a fresh high of P10.327 trillion in January as the state ramped up local borrowings to fund its pandemic responses.
The Bureau of the Treasury reported yesterday that the national debt level during the month was 5.4 percent higher from the end-December 2020 level largely due to the reavailment of the P540-billion short-term loan facility from the Bangko Sentral ng Pilipinas (BSP).
Out of the total debt stock, 71 percent came from domestic borrowings and 29 percent from foreign sources.
Domestic debt amounted to P7.325 billion, 9.4 percent higher compared to the end-December 2020 level, due to increased domestic financing and the provisional advances from the BSP.
External debt, on the other hand, stood at P3.001 billion or 3.2 percent lower from the previous month due to the net repayment of foreign loans amounting to P93.49 billion and a weaker peso against the dollar.
Total government-guaranteed obligations, meanwhile, fell slightly by 0.4 percent month-on-month to P456.39 billion in January after net repayments worth P320 million and P180 million were made to local and foreign guarantees, respectively.
In a research note, Rizal Commercial Banking Corp. chief economist Michael Ricafort said the national government could still borrow more locally in part to reduce foreign exchange risks arising from external borrowings.
Source: https://www.philstar.com/business/2021/03/03/2081489/government-debt-hits-new-high-p103-trillion-january