MANILA – The Philippines added P51.31 billion to its sovereign debt in June, raising its total obligations to a new record of P14.15 trillion, according to data from the Bureau of Treasury. 

June’s total debt was 0.4 percent higher compared to May, Treasury added. 

Domestic borrowings still made up the bulk, or 68.6 percent, of the total debt stock, with foreign borrowings making up the 31.4 percent difference. 

The national government’s domestic debt amounted to P9.7 trillion, which was P114.32 billion or 1.2 percent higher compared to May. This was due to the net issuance of government bonds driven by the NG’s financing requirements, Treasury said. 

Since the start of 2023, domestic debt has increased by P494.44 billion.

Foreign debt meanwhile amounted to P4.45 trillion, which was lower by P63 billion compared to previous month. 

This was due mainly to the peso regaining strength against the dollar and other currencies, which led to a decrease in the peso value of foreign borrowings. 

“These more than offset the availment of foreign loans amounting to P15.25 billion,” Treasury said. 

Foreign debt has increased by P234.55 billion or 5.6 percent from the end-December 2022 level.

Since 2016, the Philippines has more than doubled its debt as it sought to finance big-ticket infrastructure projects and fund its pandemic response.

Government economists however have played down concerns over the growth in the country’s debt saying the issue remains manageable.