MANILA - Debt repayments and a stronger peso brought down the government's outstanding debt by 0.1% at end-July from the previous month, the Bureau of Treasury said.

According to data released by the Bureau of Treasury on Thursday, total debt stock as of end-July stood at P4.22 trillion, lower than the P4.23 trillion in June, despite the $750 million dollar bond issue in July.

Debts sourced from domestic market now account for 55% of total debts, while foreign loans, a bane to several lawmakers and think tanks, have a 44% share.

The Philippines, one of Asia's largest sovereign debt issuers, has raised $2.25 billion from the dollar bond market to finance its 2009 budget deficit and is now looking at other funding sources to finance relief and rehabilitation after two recent typhoons so as not to bloat the debt stock.

A Philippine state agency plans to issue reconstruction bonds of up to P50 billion ($1.1 billion) in 5- to 10- year maturities to fund rebuidling, Trade Secretary Peter Favila told Reuters on Thursday.

The government has previously said it could sell up to $500 million in Japanese government-backed yen bonds in the fourth quarter to fund part of its 2010 borrowing requirement. with Reuters