The National Government’s (NG) total outstanding debt reached P12.89 trillion as of end-July 2022.
The P96.09 billion or 0.8% increment from the end-June 2022 level was due to the net issuances of domestic and external loans as well as currency adjustments.
NG debt has increased by P1.16 trillion or 9.9% since end-December 2021 but the debt-to-GDP ratio has improved to 62.1% as of end-Q2 2022 from the 63.5% recorded in the previous quarter as the economy continues to recover from the health crisis.
Of the total debt stock, 31.5% was sourced externally while 68.5% were domestic borrowings.
NG domestic debt amounted to P8.83 trillion, which is P65.07 billion or 0.7% higher compared to the end-June 2022 level.
For July, the increase in domestic debt resulted from the net issuance of government securities amounting to P64.33 billion and the P0.74 billion impact of local currency depreciation[1] against the US dollar.
Since the beginning of the year, NG domestic debt has increased by P661.77 billion or 8.1% and comprises 68.5% of the total debt portfolio.
NG external debt amounted to P4.06 trillion, which is P31.02 billion or 0.8% higher than the end-June 2022 level.
The increment in the level of external debt was attributed to the impact of local currency depreciation against the USD amounting to P25.77 billion and net availment of external financing amounting to P6.00 billion.
These were tempered by the P0.75 billion effect of third-currency depreciation against the US dollar. NG external debt has increased by P497.60 billion or 14.0% from the end-December 2021 level and accounts for 31.5% of total outstanding debt.
Total NG guaranteed obligations decreased by P5.93 billion or 1.4% month-over-month to P408.00 billion as of end-July 2022. For July 2022, the decrease in guaranteed debt was primarily due to the net repayment of both domestic and external guarantees amounting to P8.56 billion and P0.19 billion, respectively.
However, currency adjustments on both local and third currency-denominated guarantees were able to offset P1.40 billion and P1.43 billion, respectively. From the end-December 2021 level, total NG guaranteed debt decreased by P15.92 billion or 3.8%.
[1] The peso depreciated against the USD from P54.970 as of end-June 2022 to P55.322 as of end-July 2022.
