Total debt hits ₱18.16T as government leans more on local borrowing.
The government’s debt pile is getting bigger, but the real story is how it’s being funded.
Outstanding debt hit ₱18.16 trillion as of end-February, slightly higher than January’s ₱18.13 trillion, according to the Bureau of the Treasury. The increase is modest at 0.14%, but the growing reliance on local borrowing stands out.
Domestic debt now accounts for 68.7% of the total, climbing to ₱12.48 trillion after the government issued ₱158.14 billion in securities to fund its spending needs. Leaning more on local sources helps cushion the country from foreign exchange volatility, especially as global financial conditions remain uncertain. At the same time, it means the government is drawing more from domestic liquidity, which can shape interest rates and influence borrowing costs for businesses and consumers.
The valuation win
External debt, meanwhile, fell to ₱5.68 trillion, down 2.21% from the previous month. The decline was largely driven by favorable exchange rate movements, which reduced the peso value of dollar- and other foreign currency-denominated obligations by ₱136.43 billion. These valuation gains offset new external borrowings amounting to ₱7.78 billion.
Despite the drop, the government continues to tap global markets. Total external financing reached ₱203.10 billion as of end-February, including the issuance of $2.75 billion in multi-tranche global bonds with maturities of 5.5, 10, and 25 years. The move signals that the Philippines still has access to foreign funding on relatively favorable terms.
Meanwhile, guaranteed obligations rose to ₱379.98 billion, driven largely by new guarantees extended to the Power Sector Assets and Liabilities Management Corp. (PSALM), a government-owned firm tasked with managing and privatizing power sector assets and debts.
The PH debt pile just grew to ₱18.16T. While external debt dropped due to a stronger peso, local borrowing hit record highs. Discover what this “70/30” split means for your interest rates and the national economy.
