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The Bureau of Treasury (BTr) on Thursday said Philippines debt hit P11.64 trillion by the end of August, slightly higher compared to the P11.61 trillion at the end of July.

In total, data showed the debt rose by P32.05 billion or 0.28 percent due to domestic debt issuance as part of government financing, the BTr said in a statement. 

Out of the total, 29.4 percent was sourced externally while 70.6 percent were domestic borrowings, it said.

Domestic debt reached P8.22 trillion, up 1.2 percent compared to end-July level, the agency said. 

External debt, meanwhile, reached P3.42 trillion or 2 percent lower compared to the previous month due to net repayment of foreign loans amounting to P34.22 billion, the agency said.

In addition, the impact of local and third currency fluctuations against the US dollar further lowered the peso value of external obligations by P32.04 billion and P2.39 billion, respectively, the BTr said.

The government has been borrowing heavily to boost its COVID-19 war chest. External funding were sourced from the Asian Development Bank, World Bank, and Asian Infrastructure and Investment Bank, among others. 

Finance Secretary Carlos Dominguez earlier said the government is expected to borrow P3 trillion this year and P2.25 trillion in 2022. 

Economic managers earlier noted that the country’s debt-GDP (gross domestic product) ratio remains sustainable despite the uptick in borrowing. 

The national government’s debt-to-GDP ratio is expected to slightly increase to 60 percent next year from the programmed 59 percent ratio in 2021, the finance chief said.