THE national government's outstanding debt ballooned to a new record high of P15.35 trillion in May as the peso weakened, the Bureau of the Treasury reported on Thursday.

"Total debt increased by P330.39 billion, or 2.2 percent, from the end-April 2024 level, primarily due to the impact of local currency depreciation on the valuation of foreign currency-denominated debt," the Treasury said in a statement.

Outstanding debt was P15.02 trillion in April. The previous peak of P15.18 trillion was hit in February.

"Of the total debt stock, 31.96 percent is external debt, while 68.04 percent is domestic debt," the Treasury noted.

As of end-May, domestic debt was 1.3 percent, or P134.34 billion, higher than a month earlier at P10.044 trillion.

This was due to the P131.66-billion net issuance of government securities and the P2.68-billion impact of the peso's fall on foreign currency-denominated domestic debt.

The currency, which was in P56-57:$1 territory in April, fell to the P58 to the dollar level in the third week of May after the Bangko Sentral ng Pilipinas indicated that it could start lowering interest rates ahead of the US Federal Reserve.

The peso fell to an over 20-month low of P58.86 last week but has since regained some ground, closing at P58.58 to the greenback on Thursday.

"Since the beginning of the year, domestic debt has increased by P424.91 billion, or 4.2 percent, while YoY (year-on-year) expansion is P854.33 billion, or 8.9 percent," the Treasury said.

External debt, meanwhile, totaled P4.90 trillion, 4.2 percent or P196.04 billion higher month on month.

The increase was said to be mainly due net foreign loan availments of P122.04 billion and an upward revaluation of P76.94 billion in dollar-denominated debt. Favorable movements in third currencies led to a P2.94-billion downward revaluation.

Compared to the end of December 2023, external debt was P306.42 billion or 6.7 percent higher while year on year it rose by 7.4 percent or P339.15 billion.

Guaranteed obligations, meanwhile, fell by 1.6 percent or P5.85 billion to P350.20 billion as of end-May from a month earlier.

The decline was attributed to net repayments of both domestic and external guarantees amounting to P4.36 billion and P3.55 billion, respectively.

Third-currency adjustments against the dollar further trimmed P620 million, the Treasury said, "dampening the P2.68 billion increment caused by peso depreciation against the US dollar."

Guaranteed debt was 0.2 percent, or P760 million, higher from the end of December last year but fell by 7.8 percent, or P29.51 billion, year on year.