Metro Manila (CNN Philippines, September 27) — A weaker peso and more borrowings led to higher national government debt in August.
National government debt stood at ₱7.94 trillion in August, 1.73 percent higher than the ₱7.8 trillion registered the previous month, according to latest data from the Bureau of Treasury.
Domestic debt was at ₱5.27 trillion, 0.4 percent higher than last month. This was due to the government issuing ₱21 billion worth of securities, with a P0.63-billion impact from the peso depreciation.
Meanwhile external debt was at ₱2.67 trillion, 4.4 percent higher than the previous month. This is due to fluctuations in local and other foreign currencies. The government also borrowed ₱45.31 billion in August.
“The latter includes the successful issuance of $855 million worth of multiple tenor Samurai Bonds in the Japanese onshore market,” the Treasury said in a statement.
The Treasury noted that the peso was ₱52.13 against $1 by the end of August, weaker than the ₱50.86 registered in end-July.
National Government debt was at ₱6.603 trillion by the end of 2016, when President Rodrigo Duterte assumed office. It was at ₱5.267 trillion in 2010, when then President Benigno Aquino III was elected, and at ₱4.645 trillion when former President Gloria Macapagal Arroyo was elected for a second term in 2004.
READ: National government debt trims down in July due to stronger peso
