MANILA, Philippines – The debt of the national government reached P5.675 trillion as of November 2013, according to data from the Bureau of Treasury.
The government’s debt jumped by P294.3 billion in November due to higher borrowings from the domestic market.
November’s figure was 5.5 percent higher compared with the P5.38 trillion incurred in the same period in 2012.
The increase in local debt was caused by higher issuances of government securities after the Aquino administration raised the domestic component in its financing program for 2013.
“The issuances [of more government securities in the local market] were aimed to take advantage of domestic liquidity and deepen the domestic capital market. Furthermore, as part of its program to borrow [more in the local market] to reduce foreign exchange risk,” the treasury said.
Meanwhile, the government’s foreign debt dropped by 1.9 percent or P38.2 billion, since the beginning of 2012 due to lesser borrowing from offshore markets and currency adjustments.
The government’s guaranteed debt as of November 2013 reached P471 billion, down 2.7 percent month-on-month.
Of the total debt, 72.1 percent was external guaranteed obligations while 27.9 percent was domestic guarantees.