National government local debt marginally lower in May

The outstanding debt of the national government (NG) amounted to P6.345 trillion as of end-May this year, a contraction by 0.4 percent, from P6.370 trillion in April. The Bureau of the Treasury (BTr) traced the improvement to the net redemption of government securities, the stronger peso as well as net repayments of NG foreign obligations.

According to the BTr, this was also an expansion by 7.8 percent, from only P5.885 trillion in the same month last year.

Of the total, 35 percent or P2.207 trillion were from overseas creditors, while 65 percent or P4.137 trillion were from domestic-loan entities.

The NG domestic debt for the month amounted to P4.137 trillion, down by 0.5 percent compared to P4.160 trillion the previous April.

“The decrease was primarily due to the net redemption of government securities amounting to P22.70 billion and a stronger peso that reduced the value of onshore dollar bonds,” the BTr said in a statement.

Overall, domestic debt has risen by 5.2 percent, from its end-December 2016 level of P3.934 trillion. Year-on-year, NG domestic debt grew by 9 percent.

NG external debt for the month, on the other hand, amounted to P2.207 trillion, a contraction by 0.1 percent, compared to only P2.210 trillion the previous April.
Debt sourced from offshore accounts also expanded by 5.7 percent, compared to P2.088 trillion in May last year.

“For the month external-debt reduction was attributed to the combined effect of [a] stronger peso and net repayments of foreign obligations amounting to P7.07 billion. These more than offset the upward revaluation in third currency-denominated debt worth P4.78 billion,” officials said.

NG external debt increased by 2.4 percent, compared to end-December 2016 level of P2.156 trillion.

Total government guaranteed obligations contracted month-on-month also by 0.3 percent, amounting to P493.62 billion in May.

“The reduction was principally due to net repayments of domestic guarantees amounting to P2.57 billion alongside the P0.80 billion effect of peso appreciation on foreign guarantees. These more than offset the effect of net availment and third-currency revaluation amounting to P0.38 billion and P1.53 billion, respectively,” the BTr said.
Year-on-year, NG outstanding guaranteed debt contracted by 11 percent, from the May 2016 level of P554.55 billion.

source:  Business Mirror