The Philippines’ sovereign debt increased in April, driven by the depreciation of the Philippine peso and the government’s net financing activities, according to data from the Bureau of the Treasury (BTr) released on Thursday.
As of the end of April, the national government’s debt stock stood at P15.017 trillion, marking a 0.61% rise from P14.925 trillion in March and a 7.95% increase from P13.911 trillion in April 2023. “This increase is due to government net financing and the impact of local currency depreciation on the valuation of foreign-currency-denominated debt,” the BTr stated.
The Philippine peso closed at P57.76:$1 on April 30, 2024, depreciating by P1.52 from P56.24:$1 on March 27, 2024. The peso further weakened to an 18-month low of P58.635:$1 on May 30.
External debt accounted for 31.36% or P4.708 trillion of the total debt stock, a 1.30% increase from P4.648 trillion in March and a 5.74% rise from P4.453 trillion in April 2023. This comprised P2.251 trillion in loans and P2.457 trillion in external debt securities.
“Despite a net repayment of P32.91 billion in foreign loans, the significant depreciation of the peso led to a P109.31 billion upward adjustment in the local valuation of US dollar-denominated debt,” the BTr noted. This was partially mitigated by a P15.91 billion downward adjustment due to movements in third-currency debt.
The government’s guaranteed obligations stood at P350.06 billion, increasing by P10.02 billion or 2.89% from March 2024. This rise was attributed to a P7.54 billion net availment of domestic guarantees and a P3.80 billion impact of peso depreciation on foreign-currency-denominated guarantees, offset slightly by P1.32 billion due to third-currency adjustments.
Domestic debt, which made up 68.64% or P10.308 trillion of the total debt, saw a 0.30% increase from P10.277 trillion in March and an 8.99% increase from P9.457 trillion in April 2023. The bulk of domestic debt consisted of government securities, with the remaining P0.16 trillion in loans.