PH debt breaches ₱12Tn for the first time-ever
The Philippines’ total outstanding loans grew 16.5% year-on-year to ₱12.03 trillion (US$203 billion) in January, reaching the country’s new record-high in national debt.
The Bureau of the Treasury (BTr) said overall borrowings grew by ₱301.12 billion (US$5.7 billion) from the end of December due to the COVID-19 pandemic.
Domestic loans, which accounted for 69.6% of the total debt stock, totaled to ₱8.37 trillion (US$160 billion) in the first month of the year.
BTr explained that this is “primarily due to net availment of domestic financing amounting to ₱197.04 billion (US$3.7 billion) including the ₱300 billion (US$5.7 billion) provisional advances availed by the NG (national government) from the BSP (Bangko Sentral ng Pilipinas) for budgetary support.”
Meanwhile, external debt amounted to ₱3.66 trillion (US$70 billion), accounting for 30.4% of the total debt stock.
The bureau noted that the peso’s depreciation against the USD (US dollar) — amounting to ₱11.23 billion (US$214 million)— affected the country’s debt growth. However, valuation adjustments in other foreign currencies totaling ₱2.37 billion (US$45 million) will help offset this.
Last year, the Philippines recorded its highest debt-to-gross domestic product (GDP) ratio at ₱11.7 trillion (US$223 billion).
