Philippines debt pile swells to record P18.13 trillion

MANILA, Philippines, March 5 ------ The Philippines’ outstanding debt swelled to a record P18.13 trillion at the end of January, as authorities accelerated debt issuance ahead of global market volatility that threatens to drive borrowing costs higher.

Latest data from the Bureau of the Treasury (BTr) showed the national debt was 11.2 percent higher than the P16.31 trillion recorded in end-January 2025. Month-on-month, the sovereign fund inched up by 2.4 percent, beating the record-high P17.71-trillion level as of end-December 2025. This means P426.15 billion was added to the debt pile in the first month of 2026. “(The) increase mainly reflects the government’s strategy of frontloading domestic and external issuances to secure concessional financing terms ahead of global market uncertainties that can further raise interest costs,” the BTr said.

For January alone, the outstanding debt was already 95 percent of the Marcos administration’s expected projection of P19.06 trillion this year. Despite posting a new record high, the Treasury said the debt level remains sustainable amid pressing challenges in the domestic and global landscape. Of the total, domestic borrowings accounted for 68 percent of the debt pile, aimed to keep its exposure to foreign exchange risk limited.

The peso closed at 58.954 per dollar at the end of January, depreciating from 58.79 in end-December 2025. It also hit a record low of 59.46 to $1 on Feb. 15. BTr data showed that the total domestic debt level reached P12.32 trillion as of the end of January, 1.7 percent higher than the P12.12 trillion recorded in December 2025 and by 11.2 percent than the P11.08 trillion in the same month last year.

The Treasury said the government securities amounting to P208.05 billion showed the state’s push to tap domestic sources of funding, for a safer and more stable option while shielding the debt portfolio from exchange rate risks. The valuation impact on domestic securities denominated in foreign currencies remained “marginal,” rising by only P470 billion. Foreign obligations, on the other hand, inched up by 3.9 percent to P5.81 trillion month-on-month, driven mainly by the “issuance of new global bonds and net availments of official development assistance from international development partners, which contributed P191.02 billion to the increase in external obligations.”

External debt, which was also 11.1 percent higher than the P5.23 trillion recorded in January 2025, was made up of nearly P3 trillion global bonds and P2.81 trillion in loans. “Meanwhile, the upward revaluation of foreign currency-denominated debt, brought about by the depreciation of the peso against major currencies, added P26.61 billion to the debt stock,” it said. At the same time, the BTr said the jump in external borrowings was a strategic and timely approach to take advantage of the narrow window of favorable international credit conditions. “The successful issuance of the triple-tranche global bonds highlighted sustained investor confidence in the Philippines’ creditworthiness and long-term growth prospects,” it added.

Meanwhile, outstanding guaranteed obligations went up by 0.6 percent to P345.08 billion as of end-January, following currency valuation adjustments on guarantees denominated in foreign currencies.

Source: philstar.com