The Philippine Government outstanding debt after the end of August 2013, stood at P5.64 Trillion, a nine percent higher compared to the August 2012 period due to higher borrowings from the domestic market.
According to the data from the Bureau of Treasury a total of P3.65 trillion debt was secured from local lenders while the balance P1.99 trillion came from foreign creditors.
The Philippine domestic debt went up by 16.3% due to a net issuance of P147 billion worth of retail Treasury bonds as the government continued to take advantage of the domestic market’s strong liquidity.
Although the domestic debt went up, the Philippine foreign debt fell 2.5% as the Aquino administration continued to prop up domestic borrowings to siphon off excess liquidity in the system. The move by the current administration is in line with the government’s bias towards domestic financing to lessen its exposure to foreign exchange risks.
Debt guaranteed by the National Government, meanwhile, amounted to P500 billion as of August, an increase of P8 billion month-on-month. Of the total, 28.7 percent (P144 billion) are domestic guaranteed debts while 71.3 percent P356 billion are external guaranteed obligations.
According to Philippine National Treasurer Rosalia De Leon, the manageability of the Philippine government’s debt has earned the country an investment grade status from three major internal credit ratings agencies, making it less susceptible to external shocks.