Metro Manila (CNN Philippines, July 3) — The Philippines saw its debt pile grow taller in May, reflecting new credit secured from euro bonds plus a weaker peso value.
The Bureau of the Treasury reported that government debt rose to ₱7.92 trillion as of end-May, rising by ₱128.72 billion from the previous month.
In a statement, the Treasury attributed the uptick to higher loans secured by the state, together with the impact of a depreciating peso.
Two-thirds of the outstanding debts are owed locally at ₱5.26 trillion. This factors in the additional ₱50.95 billion credit secured by the national government through Treasury bills and bonds. Some unsettled dollar bonds issued onshore also saw values climb due to a weaker peso, which depreciated to ₱52.222 versus the greenback. In April, the peso averaged at ₱52.098 to $1.
The country’s foreign debt posted a faster increase, rising by three percent to ₱2.66 trillion in May. The Treasury said this was driven by currency fluctuations, alogside the ₱61.48 billion in fresh euro bonds issued by the government.
Total debts have risen by 8.5 percent compared to the end-2018 level of ₱7.3 trillion, the bureau added.
For the month, the state has set aside ₱486.16 billion to pay off a portion of the obligations.
These bonds, which were taken up by European investors and global fund managers, were meant to “diversify funding sources for infrastructure investment and human capital development.”
