PH debt climbs to ₱15.69T as of July

Metro Manila, Philippines – National debt has ballooned to ₱15.69 trillion as of July, the Bureau of the Treasury announced Tuesday, Sept. 3.

This is ₱206.49 billion or 1.3% higher than the total outstanding debt at the end-June.

The rise is “primarily driven by the net issuance of both domestic and external debt,” the bureau said. The total debt stock is 68.54% domestic and 31.46% external.

Domestic debt increased to ₱10.75 trillion in July, up by ₱180.03 billion or 1.7% from the previous month.

“The rise in domestic debt was mainly due to the ₱180.52 billion net issuance of government securities, although partially tempered by the ₱0.49 billion downward revaluation effect of peso appreciation on US dollar-denominated domestic securities,” the BTr said in a news release.

Meanwhile, external debt reached ₱4.94 trillion, a ₱26.45 billion or 0.5% increase from June.

This growth was driven by ₱5.25 billion in new project loans and a ₱35.44 billion revaluation from third-currencies, though partially offset by a ₱14.23-billion decrease due to peso appreciation, according to the BTr.

Overall, national debt rose by 7.35% since December 2023.

Finance Secretary Ralph Recto has assured the public that the government can manage the rising debt, noting that the country’s debt-to-GDP ratio is improving, which indicates an ability to service loans.