The Philippines’ sovereign debt rose to P16.63 trillion at the end of February, marking an increase of P319.26 billion or 1.96% from the previous month, according to the Bureau of Treasury. The rise in debt was attributed to the government’s increased borrowing to fund various public programs and projects.
In the first two months of the year, the country’s debt grew by P589.73 billion or 3.62%. Compared to February of last year, the total debt has risen by P1.45 trillion, or 9.57%. The Treasury noted that the peso’s appreciation against the dollar helped mitigate the increase in debt, reducing the foreign debt obligations slightly.
At the end of February, the peso strengthened to P57.99 from P58.375 at the end of January, providing some relief in managing foreign debt obligations.
Domestic debt made up 67.5% of the total obligations, amounting to P11.22 trillion, which was 1.26% higher than in January. Foreign debt stood at P5.41 trillion, a 3.44% increase from the previous month.
The Treasury pointed out that the increase in foreign debt was partly due to a P20.41 billion net appreciation effect on debt not denominated in US dollars. However, the peso’s appreciation helped reduce the value of foreign debt by P34.48 billion.
Despite the growing national debt, Philippine economic managers, including Finance Secretary Ralph Recto, have reassured that the debt remains manageable as long as the country’s economic growth outpaces the increase in debt.