Gov't debt rises as peso weakens

ABS-CBN News

Posted at Jul 26 2017 08:00 PM

A bank teller counts Philippine peso for a client selling US dollars in Manila on November 21, 2008. Romeo Gacad, AFP/ FILE

MANILA - The depreciation of the peso against the dollar caused the national government's debt to rise further in June, data from the Bureau of Treasury showed Wednesday. 

The Philippines' foreign obligations jumped by 5.2 percent in June to P2.231 trillion from P2.119 trillion in the same month in 2016.

"The increment was largely due to the impact of peso depreciation against the US dollar," the bureau said in a statement.

Meanwhile, domestic debt also rose 9.3 percent to P4.186 trillion amid net issuance of government securities, and as the peso's depreciation increased the value of onshore dollar bonds.

The national government's total debt stood at P6.417 trillion as of June 2017.

The bureau earlier said the government's debt was expected to breach the P7-trillion mark next year as the Duterte administration boosts infrastructure spending.

The Department of Finance, however, said the total debt remains manageable.