PHL debt at P13.52 trillion as of end-September 2022

The National Government’s (NG) total outstanding debt stood at P13.52 trillion as of end-September 2022.

For the month, NG’s total debt increased by P495.54 billion or 3.8% primarily due to peso depreciation against the US dollar (USD) and the net issuance of government securities to support the budget.

Of the total debt stock, 31.2% was sourced externally while 68.8% were domestic borrowings. At the current level, debt has increased by P1.79 trillion or 15.2% since end-December 2021.

Domestic debt amounted to P9.30 trillion, which is P357.27 billion or 4.0% higher compared to the end-August 2022 level.

For September, the increase in domestic debt resulted from the net issuance of government securities amounting to P352.09 billion and the P5.18 billion impact of local currency depreciation1 against the US dollar.

Since the beginning of the year, the domestic debt portfolio has increased by P1.13 trillion or 13.8% due to continued preference for domestic financing to mitigate the effects of currency fluctuations.

External debt amounted to P4.22 trillion, which was P138.27 billion or 3.4% higher than the end-August 2022 level.

The increment in the level of external debt was due to the P179.69 billion impact of local currency depreciation against the USD.

This was partially offset by the P30.62 billion effect of third-currency depreciation against the USD and net repayment amounting to P10.80 billion.

Year-to-date, external debt increased by P658.30 billion or 18.5% primarily due to local- and third-currency fluctuations that increase the peso value of foreign denominated obligations.

Total guaranteed obligations increased by P4.46 billion or 1.1% month-over-month to P397.22 billion as of end-September 2022.

For September, the increment in guaranteed debt was primarily due to the impact of local currency depreciation amounting to P9.27 billion, offsetting the net repayment amounting to P1.43 billion and P3.48 net depreciation effect on third currency denominated guarantees.

However, from the end-December 2021 level, total NG guaranteed debt has decreased by P26.70 billion or 6.3%.

1The peso depreciated against the USD from P56.171 as of end-August 2022 to P58.646 as of end-September 2022.