Total government debt rose to P12.68 trillion in March from P12.09 billion in February, the Bureau of Treasury said Thursday.

For the month, P586.29 billion, or 4.8 percent of the total debt portfolio was added primarily due to the net issuance of government securities to both local and external lenders.

Of the total debt stock, 30.1 percent was sourced externally while 69.9 percent were domestic borrowings.

Malacañang assured the P12 trillion outstanding loan of the government will benefit the country long-term.

Acting Presidential Spokesperson Martin Andanar said the amount will be used for the government's pandemic recovery.

"Recent borrowings would be for our COVID-19 response and recovery and resiliency efforts," Andanar said.

National government domestic debt amounted to P8.87 trillion, which is P455.45 billion or 5.4 percent higher compared to the end-February level.

For March, the national government raised P457.80 billion through its domestic Retail Treasury Bond issuance and debt exchange transaction.

From the end-December 2021 level, outstanding domestic debt has increased by P698.24 billion or 8.5 percent.

National government external debt of P3.81 trillion was P130.84 billion or 3.6 percent higher from the national government external debt of P3.81 trillion was P130.84 billion or 3.6 percent higher from the previous month.

The increment to external debt was due to the net availment of external financing amounting to P122.69 billion including the P117.33 billion ($2.25 billion) triple tranche 5-year, 10.5-year and 25-year Global Bonds.

Meanwhile, the effect of peso depreciation against the dollar added P37.31 billion

which was tempered by adjustments in third currencies which trimmed P29.17

billion.

Total national government guaranteed obligations decreased by P5.16 billion or 1.2 percent month-overmonth to P411.04 billion as of end-March.

The lower level of guaranteed debt was due to the net repayment of both domestic and external guarantees amounting to P0.76 billion and P1.55 billion, respectively.

Third-currency exchange rate fluctuation further lowered the peso value of external guarantees by P5.16 billion, offsetting the P2.31 billion effect of local currency depreciation against the US dollar. DMS