MANILA - The country's debt stock as of end-August was 5.1% higher than what was recorded as of the same period last year as the government raised more funds to plug the widening budget deficit.

Data from the Bureau of Treasury showed, the Philippines' outstanding debt amounted to P4.231 trillion as of the first 8 months of the year, P207 billion more than the P4.024 trillion as of the same period in 2008. The latest figure was also 0.2% or P10 billion higher than July's P4.22 trillion.

The Treasury blamed the month-on-month increase in the debt on the depreciation of the peso and appreciation of third currencies against the dollar, and adjustments arising from the conversion of loans from multilateral lender Asian Development Bank.

At the end-August level, each of the 92.2 million Filipinos owed P45,889.

The Treasury said 55% of the total national debt came from domestic creditors while 45% was sourced from foreign ones.

Domestic debt declined 2.1% to P2.309 trillion as of end-August 2009 from P2.359 trillion as of the same month last year.

Foreign debt, on the other hand, soared 15.4% to 1.922 trillion from P1.665 trillion as the government floated more foreign currency-denominated bonds and availed of more official development assistance loans from multilateral institutions.

Last month, the Philippines, one of Asia's largest sovereign debt issuers, sold $1 billion in 25-year global bonds, bringing to $3.25 billion its total foreign debt issues this year. A portion of the latest bond proceeds may be used to finance this year's budget shortfall, which is expected to breach the government's P250-billion fiscal gap ceiling.

The country may postpone a planned Samurai bonds issue to next year with the government and the Japan Bank for International Cooperation yet to agree on the guarantee pricing.