Debt hits fresh peak of P16.6 trillion in February

MANILA, Philippines — The issuance of domestic and foreign securities pushed the country’s outstanding debt to a fresh high of P16.63 trillion in February, the Bureau of the Treasury said.

Latest data from the Treasury showed that the national debt settled at P16.63 trillion as of end-February, its highest level to date.

The amount was also 10 percent higher than the P15.18-trillion debt in the same month last year.

For February alone, the government added P319.26 billion to the debt pile due to the net issuance of new domestic and external debt to support more public programs and projects.

The increase was partially offset by the strengthening of the peso against the dollar, which helped manage foreign debt obligations.

The peso appreciated to 57.99 to $1 at the end of February from 58.375 vis-a-vis the dollar a month ago.

As of end-February, the outstanding debt was already 95.8 percent of the 2025 debt expectation of a record P17.35 trillion.

Nonetheless, the government maintained that such a level remains manageable and aligned with the administration’s target to support economic development while ensuring fiscal sustainability.

The Treasury said domestic borrowings accounted for the bulk or 67.5 percent of the debt pile while the remaining 32.5 percent came from external sources.  

“This financing mix reflects a prudent approach to debt management to help mitigate exposure to external risks while taking advantage of the country’s liquid domestic market,” the Treasury said.

Total domestic debt at P11.22 trillion slightly went up by 1.26 percent on a monthly basis and jumped six percent from the P10.58 trillion in February 2024.

The increase was due to the P140.72 billion in net domestic financing, as the P268.25 billion gross issuance of government securities exceeded redemptions of P127.53 billion for the month.

The peso’s appreciation, however, contributed to a P1.1-billion reduction in the overall domestic debt valuation, helping temper the increase.

External obligations, on the other hand, rose by 3.4 percent to P5.41 trillion month-on-month. It grew by 18 percent from P4.6 trillion on a yearly basis.

The Treasury said this is due to the net availment of foreign borrowing amounting to P193.71 billion and the P20.41 billion net appreciation effect on third-currency-denominated debt.

These factors were partially offset by a P34.48-billion reduction due to peso appreciation.

For February, the government secured P197.3 billion in external financing, including P190.82 billion through a triple-tranche global bond issuance and P6.48 billion in project loans.

Project loans were used on rail projects through the Japan International Cooperation Agency (P3.86 billion), physical connectivity and health sector interventions in partnership with the Asian Development Bank (P1.71 billion) and agricultural and health sector programs assisted by the International Bank for Reconstruction and Development (P910 million).

The government’s guaranteed obligations went down to P341.11 billion. Net repayment of both domestic and external guarantees amounted to P5.83 billion and P150 million, respectively.