Metro Manila (CNN Philippines, October 29) — National outstanding loans once again hit a record high at the end of September as authorities ramp up borrowing amid the COVID-19 health crisis, Treasury data published Friday showed.
The country’s total debt stock surged to ₱11.91 trillion during the month, increasing by 27.2% annually. This figure likewise surpassed the previous ₱11.64-trillion high set in August.
The Treasury noted this was “due to net issuance of both domestic and external debt and peso depreciation against the US Dollar.”
Domestic loans climbed to ₱8.37 trillion by end-September, a 30.3% yearly growth with the net issuance of government securities according to the bureau.
Debts with foreign lenders, meanwhile, leaped by 20.4% year-on-year to ₱3.53 trillion.
“For September, the increment in external debt was due to the net availment of foreign loans amounting to ₱43.99 billion and the effect of local currency depreciation against the US Dollar amounting to ₱76.82 billion,” the Treasury said.
These offset third-currency fluctuations against the American currency equal to ₱13.73 billion, it added.
The bureau also reported guaranteed obligations of ₱432.86 billion as of end-September, lower by 2.8% from the same period last year. Domestic and external guarantee net repayments, meanwhile, totaled ₱2.56 billion.
“However, local-currency depreciation against the US dollar increased the value of external guarantees by P4.47 billion, offsetting repayments and third-currency depreciation which trimmed P1.27 billion,” the agency said.
Economists earlier warned that the country’s loans may continue to balloon as quarantine restrictions hamper the government’s revenue collection efforts, prompting authorities to borrow more to address the increasing budget deficit.
