Peso weakness weighs on debt goal

Despite the nearly two-percent month-on-month hike in foreign borrowings, the national government's (NG) outstanding debt fell to P17.455 trillion in September, though top finance officials warned that further reductions will depend heavily on the peso's strength against the United States (US) dollar.

- DERCO ROSAL

National Treasurer Sharon P. Almanza told Manila Bulletin on Thursday, Oct. 30, that trimming the national debt down to the P17.36-trillion end-2025 goal will "depend on the foreign exchange (forex)."

"As you know, the peso has depreciated, and we still have forex liabilities," Almanza said, referring to the peso's drop to its weakest-ever level at P59.13:$1 last Tuesday and its downward trend in October.

Almanza earlier told Manila Bulletin that the target remained within the revised Medium-Term Fiscal Framework (MTFF) but cautioned that major changes in the value of the country's debt could be affected by forex valuation.

Meanwhile, Finance Secretary Ralph G. Recto maintained his rosier outlook on public debt for the year.

"We are on target, as I said before," he told Manila Bulletin.