Philippines debt climbs to record P18.2 trillion

In February

MANILA, Philippines — The country’s outstanding debt reached a fresh peak of P18.16 trillion in February, as the government slightly increased domestic financing to buffer against external risks, but this was tempered by a decline in external loans.

Latest data from the Bureau of the Treasury (BTr) showed the national debt reached P18.16 trillion at the end of February, inching up by just 0.14 percent from the P18.13 trillion in the previous month.

The outstanding debt level was already 95 percent of the expected record of P19.06 trillion in 2026.

For the month of February, the government added some P25.74 billion in fresh obligations, which the BTr said showed the “government’s stable and well-managed debt position amid evolving global financial conditions.”

“This was largely driven by the continued prioritization of domestic financing to protect the government’s debt position from unfavorable external developments,” it added.

Domestic debt made up 68.7 percent of the total, as the administration seeks to keep “a prudent debt profile that minimizes vulnerability to foreign exchange fluctuations.”

BTr data showed domestic debt jumped slightly, rising by 1.3 percent to P12.48 trillion as of end-February, as the government issued more securities worth P158.14 billion to raise funds for national development.

“The impact of currency movements on foreign currency-denominated domestic securities remained minimal, reducing valuations by P3.75 billion,” it said.

Annually, domestic debt also jumped 11.2 percent from the P11.22 trillion in February 2025.

On the other hand, external obligations stood at P5.68 trillion, down by 2.2 percent from P5.81 trillion in January.

The Treasury attributed the slight contraction in external debt to favorable foreign exchange rate movements, which weakened the peso value of US dollar- and third-currency-denominated obligations by a total of P136.43 billion.

These valuation gains more than offset the net external loan availment amounting to P7.78 billion, it said.

The government raised P203.10 billion as of end-February, including the successful issuance of $2.75 billion in triple-tranche global bonds with tenors of 5.5, 10 and 25 years.

However, foreign obligations rose by five percent from P5.41 trillion in the same period in 2025.

“This reflects sustained investor confidence in the country’s credit profile and the NG’s ability to tap international markets on reasonable terms. Since the end of December 2025, NG external debt rose by P88.98 billion or 1.59 percent,” it said.

Meanwhile, total debt guaranteed obligations increased by 10.11 percent to P379.98 billion amid new guarantees extended to the Power Sector Assets and Liabilities Management Corp., partially offset by net repayments and favorable currency movements.

Rizal Commercial Banking Corporation chief economist Michael Ricafort said the catch-up spending and front-loading of borrowings amid the US-Iran war could inflate the budget deficit and debt.

The record-low peso, breaching 60 per dollar, could lead to a higher peso equivalent for foreign loans.