PH debt slightly eases to ₱12.5T in May as govt settles BSP loan

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Metro Manila (CNN Philippines, July 1) — The national government's outstanding debt amounted to ₱12.5 trillion by the end of May, down from the previous month, the Bureau of the Treasury (BTr) said Friday.

The latest debt stock tally, which represented a 12.9% annual growth, slipped from the record-high ₱12.76 trillion recorded in April

The Treasury mainly attributed the month-on-month decline to the settlement of ₱300 billion in provisional advances from the Bangko Sentral ng Pilipinas.

The Department of Finance settled the advances, which ensures authorities steady access to cash, ahead of the June 11 maturity date as it unwinds the BSP's pandemic-related liquidity support before the new administration comes into power. 

However, this repayment was "partially tempered" by the issuance of government securities, said the BTr.

With this, local borrowings fell 3% from April but climbed 9.5% year-on-year.

Foreign debt was at ₱3.83 trillion, up 0.1% month-on-month due to local and foreign currency fluctuations against the US dollar at ₱5.63 billion and ₱9.41 billion respectively.

"These more than offset the effects of net repayment of external obligations amounting to ₱12.05 billion," the bureau explained.

Annually speaking, external loans jumped 21.4%.

The state's guaranteed obligations hit ₱399.71 billion by end-May, both down 3.3% from April and 6.3% from last year.

"The reduction in guaranteed debt was due to the net repayment of both domestic and external guarantees amounting to ₱8.41 billion and ₱6.48 billion, respectively," said the Treasury.