THE Bureau of the Treasury (BTr) announced on Saturday, September 3, that the national government's total outstanding debt reached P12.89 trillion at the end-July 2022 level, up by 9.9 percent from the beginning of the year.

According to the agency's data, the additional P96.09 billion (0.8 percent) in debt starting from the end of June 2022 was due to additional local and foreign borrowings as well as currency adjustments.

BTr also pointed out that the national government's debt has increased by P1.16 trillion (9.9 percent) since the end of December 2021, but that the country's debt-to-GDP ratio also improved to 62.1 percent at the end of the second quarter of 2022 in comparison to the 63.5 percent figure recorded in the previous quarter. This was because of the economy continuing to recover from the pandemic.

In breaking down the total value of the debt that the nation owes to all lenders, 31.5 percent was from foreign sources while 68.5 percent were domestic borrowings.

National government domestic debt amounted to P8.83 trillion at the end of July 2022, which is P65.07 billion (0.7) percent higher compared to the end of last month.

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The increase was a result of the net issuance of government securities amounting to P64.33 billion and the P740 million impact of the Philippine peso depreciating against the US dollar. Since the beginning of 2022, local debt has increased by P661.77 billion or 8.1 percent.

Meanwhile, external debt reached P4.06 trillion at the end of July this year, P31.02 billion (0.8 percent) higher than the end-June 2022 level.

The latest addition was due to the impact again of local currency depreciation against the US dollar amounting to P25.77 billion and net availment of external financing amounting to P6 billion. These were offset by the P0.75 billion effect of third-currency depreciation against the US dollar.

The country's foreign debt went up by P497.60 billion (14 percent) coming from the end-December 2021 level.

Total national government guaranteed obligations decreased by P5.93 billion (1.4 percent) month-on-month from P413.92 billion to P408.00 billion as of end-July 2022.

For July 2022, the decrease in guaranteed debt was primarily because of the net repayment of both domestic and external guarantees which amounted to P8.56 billion and P190 million, respectively. However, currency adjustments on both local and third currency-denominated guarantees were able to offset P1.40 billion and P1.43 billion, respectively.