PH debt inches closer to ₱17 trillion

The national government's outstanding debt reached P16.92 trillion in May, setting a new record high as it neared the P17-trillion mark, from P16.75 trillion at end-April.

- BY DERCO ROSAL

According to the latest data reported by the Bureau of the Treasury (BTr), the one-percent, or ₱166.2-billion, increase from the end-April level was mainly because of fresh loans from domestic lenders.

Despite nearly breaching ₱17 trillion, the debt increase in May was still "minimal" and remained at a level that is "manageable," the BTr said.

It said in a statement released on Thursday, July 3, that the month-on-month increase was "primarily driven by the successful net issuances of new domestic securities, which reflect sustained investor confidence in the Philippine economy."

A faster bloating of the debt stock was "partially offset by the valuation effects of a stronger peso, helping reduce the value of external obligations." Before nearly slumping to the ₱58:$1 level in June amid the Israel-Iran conflict, the local currency had been at its highs in May, hovering at the P56 level against the United States (US) dollar.