Gov’t Debt Soars to P7.76 Trillion

The Philippines’ debt pile rose to 7.76 trillion pesos as of end-January following the government’s issuance of euro-denominated offshore bonds during the month, the Bureau of the Treasury reported.

The national government’s outstanding debt as of end-January went up by 0.4 percent to 7.76 trillion pesos from 7.73 trillion pesos in December last year.

The government borrows from both domestic and external lenders to plug the expected deficit in its budget which is capped at 3.2 percent of the 2020 gross domestic product.

Based on the Treasury data, 5.12 trillion pesos or 66 percent of total debt came from domestic lenders.

External debt, on the other hand, rose by 1.4 percent to 2.64 trillion pesos as of end-January.

The Philippines raised 1.2 billion euros in January from the issuance of three and nine-year bonds.

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