MANILA – The country’s debt slightly declined to P17.47 trillion as of end-August, down 0.5 percent from P17.56 trillion in July, following the government’s full repayment of its biggest local bond for the year worth P516.34 billion, the Bureau of the Treasury (BTr) said Tuesday.

The BTr said the stronger peso also contributed to the reduction, as it lowered the value of the country’s external debt.

The share of domestic borrowings to total debt rose to 69.2 percent from 68.9 percent a month earlier, which the BTr described as a sign of a “generally more favorable debt position.”

“Domestic debt is less vulnerable to shifts in foreign exchange movements,” it said, adding that local borrowing is largely owed to Filipinos, allowing money to circulate back into the economy.

Domestic debt fell by P21.39 billion to P12.09 trillion, while external debt dropped by P73.68 billion to P5.38 trillion.

Year-to-date, the government has raised P1.84 trillion in gross domestic financing, including proceeds from the issuance of Retail Treasury Bond Tranche 31 (RTB-31).

“This demonstrates strong investor confidence in government securities as an inclusive and high-quality investment option for Filipinos,” the BTr said.

The national government’s guaranteed obligations also declined to P346.46 billion in August, a P6.51 billion drop from July, mainly due to the peso’s appreciation affecting external guarantees.

The BTr reiterated its commitment to “prudent debt management and responsible borrowing,” saying financing activities will remain aligned with the country’s growth agenda while protecting the welfare of future generations. (PNA)