MANILA, Philippines –The government’s total outstanding debt reached a historic high of P16 trillion in October, according to the Bureau of the Treasury.
The debt now represents approximately 60.3 percent of the Philippines’ economic size.
The increase was partly due to a weakened currency, which inflated the peso value of debts in foreign currencies. According to the Bureau of the Treasury, this marks a 0.8 percent increase from the previous month, bringing the total debt burden to P16.02 trillion.
The increase in debt is seen across various sectors, including both domestic and foreign borrowings. Domestic debt accounts for a significant portion of the total, reflecting extensive borrowing from internal sources to fund government projects and programs. This also includes government securities, which are often issued to cover budget deficits and other financial needs.
Conversely, the foreign debt portion has expanded due to shifts in exchange rates. A weakening peso has made it costlier for the government to service its foreign obligations, which are often denominated in stronger currencies like the US dollar. This situation has heightened concerns about the country’s ability to manage and repay these debts amid ongoing economic challenges.
