The national government’s total outstanding debt reached P12.89 trillion as of end-July, the Bureau of Treasury said Saturday.

The P96.09 billion or 0.8 percent increment from the end-June level was due to the net issuances of domestic and external loans as well as currency adjustments.

National government debt has increased by P1.16 trillion or 9.9 percent since end-December 2021 but the debt-to-GDP ratio has improved to 62.1 percent as of end of second quarter from the 63.5 percent recorded in the previous quarter as the economy continues to recover from the health crisis.

Of the total debt stock, 31.5 percent was sourced externally while 68.5 percent were domestic borrowings.

Domestic debt amounted to P8.83 trillion, which is P65.07 billion or 0.7 percent higher compared to the end-June level. For July, the increase in domestic debt resulted from the net issuance of government securities amounting to P64.33 billion and the P0.74 billion impact of local currency depreciation against the US dollar.

Since the beginning of the year, national government domestic debt has increased by P661.77 billion or 8.1 percent and comprises 68.5 percent of the total debt portfolio.

National government external debt amounted to P4.06 trillion, which is P31.02 billion or 0.8 percent higher than the end-June level.

The increment in the level of external debt was attributed to the impact of local currency depreciation against the US dollar amounting to P25.77

billion and net availment of external financing amounting to P6 billion.

These were tempered by the P0.75 billion effect of third-currency depreciation against the US dollar. National government external debt has increased by P497.6 billion or 14 percent from the end-December 2021 level and accounts for 31.5 percent of total outstanding debt.

Total national government guaranteed obligations decreased by P5.93 billion or 1.4 percent month-over-month to P408 billion as of end-July.

For July, the decrease in guaranteed debt was primarily due to the net repayment of both domestic and external guarantees amounting to P8.56 billion and P0.19 billion, respectively.

However, currency adjustments on both local and third currency-denominated guarantees were able to offset P1.4 billion and P1.43 billion, respectively.

From the end-December 2021 level, total national government guaranteed debt decreased by P15.92 billion or 3.8 percent. Bureau of Treasury