In a statement, the BTr said outstanding debt jumped 3.8% or P495.54 billion as of end-September from the then-record-high P13.02 trillion as of end-August, “primarily due to peso depreciation against the US dollar and the net issuance of government securities to support the budget.”The BTr said debt increased by 15.2% from the P11.73-trillion level as of end-December 2021.
“For September, the increase in domestic debt resulted from the net issuance of government securities amounting to P352.09 billion and the P5.18-billion impact of local currency depreciation against the US dollar,” the BTr said. Meanwhile, external debt jumped 19.5% to P4.22 trillion as of end-September, from P3.52 trillion a year ago. It increased 3.4% from P4.08 trillion in the previous month.“The increment in the level of external debt was due to the P179.69-billion impact of local currency depreciation against the USD . This was partially offset by the P30.62-billion effect of third-currency depreciation against the USD and net repayment amounting to P10.80 billion,” the BTr said.
“For September, the increment in guaranteed debt was primarily due to the impact of local currency depreciation amounting to P9.27 billion, offsetting the net repayment amounting to P1.43 billion and P3.48 net depreciation effect on third- currency denominated guarantees,” BTr said. “Higher interest rates would also increase the government’s interest rate payments and could lead to more borrowings. Higher inflation could also increase the government’s expenditures, widen the budget deficit, and, in turn, would lead to more debt.”
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