The national government’s outstanding debt as a percentage of the gross domestic product (GDP) in 2019 improved versus the year ago level, even as the nominal figure rose, data released by the Bureau of the Treasury (BTr) showed.
According to the BTr, debt-to-GDP ratio went down to 41.5 percent from 41.9 percent a year ago, beating the program of 41.7 percent for the year.
The outstanding debt stood at P7.73 trillion as of end-2019, six percent higher than the P7.29 trillion recorded in the same period a year ago.
“The improved debt-to-GDP ratio is a result of prudent cash and debt management backed by steady economic growth,” the BTr said.
Of the total debt stock, 33.7 percent are external debt while 66.3 percent are domestic debt.
From the previous month’s level, the nominal figure rose 0.3 percent which the BTr said was primarily due to net availments and exchange rate adjustments.
The domestic debt amounted to P5.13 trillion, 7.3 percent up from the year ago level of P4.78 trillion, while it was 0.2 percent higher compared to the end-November 2019 level.
“For the month, domestic debt increased mainly due to the net issuance of government securities amounting to P11.96 billion and the P0.02 billion effect of peso depreciation on onshore dollar bonds,” the BTr said.
External debt meanwhile amounted to P2.6 trillion, 3.5 percent up from the year ago level of P2.52 trillion, and 0.4 percent higher than the previous month.
“For December, the increase in external debt was due to the net availment of foreign loans amounting to P2.51 billion and the combined effect of local and third-currency fluctuations which increased the value of foreign debt by P2.25 billion and P4.90 billion, respectively,” the BTr said.
