Philippine debt climbs to record P18.49 trillion in March as peso weakens

MANILA, May 7 ------ The Philippine national debt climbed to a record P18.49 trillion at the end of March, the government announced, as a weakening currency and new local borrowing pushed obligations higher.

Total outstanding debt rose by 1.8 percent, or P328.43 billion, from February levels, according to the latest figures released by the Bureau of the Treasury. The spike was primarily fueled by the revaluation impact of a sliding peso against the US dollar, which significantly inflated the cost of servicing foreign-denominated loans.

During the month, the Philippine currency weakened by more than three pesos against the greenback, overshadowing modest gains from debt repayments. Domestic debt reached P12.53 trillion, marking a 0.44 percent increase from the previous month. This growth was driven largely by the net issuance of government securities as Manila continues to tap local markets to fund its national budget, with currency fluctuations adding a further 8.68 billion pesos to the value of foreign-currency domestic holdings.

External debt saw a more dramatic jump, rising nearly 5 percent to P5.95 trillion by the end of the first quarter. While the government managed net repayments of P2.55 billion, the depreciation of the peso added P299.5 billion to the total valuation of foreign obligations. The Treasury also reported that guaranteed obligations edged up to P381.41 billion, representing a nearly 11 percent increase compared to the end of 2025 as the government continues to navigate global currency volatility.

Source: news.abs-cbn.com