NG debt rise to P8.89T

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The national government’s outstanding debt as of end-May reached P8.89 trillion, amid increased reliance on government securities issuance and external loan availments to fund the country’s coronavirus disease 2019 (COVID-19) response, data released by the Bureau of the Treasury (BTr) showed.

The BTr data sent out in a statement yesterday showed that outstanding debt as of May rose by 3.4 percent from the end-April level of P8.6 trillion, and 12.3 percent from the May 2019 level of P7.9 trillion.

The government tapped domestic and offshore sources to fund its COVID-19 response, as revenue collections posted a sharp drop.

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Of the total outstanding debt stock, 32 percent was sourced externally while 68 percent was borrowed domestically.

Domestic debt amounted to P6 trillion, 2.9 percent higher compared to the end-April level which the BTr said was primarily due to the net issuance of domestic government securities.

It also rose by 14.8 percent from the year ago level of P5.2 trillion.

External debt meanwhile amounted to P2.86 trillion, 4.4 percent higher from the previous month.

“Net availment of external loans amounted to P114.01 billion as part of continued government efforts to secure financing for the COVID-19 response while local currency depreciation added P7.65 billion to the peso value of external obligations. On the other hand, third currency adjustments trimmed P1.74 billion,” the BTr said.

The external debt as of end-May also went up by 7.4 percent from the P2.66 trillion recorded in the same period a year ago.

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