Peso weakness pushes PH debt to new record high of P19.66 trillion

The Philippines’ sovereign debt piled up to a new historic high of P19.66 trillion as of the end of September, mostly driven by the peso’s weakness which in turn raise the value of foreign currency denominated obligations.

Data released by the Bureau of the Treasury showed the national government’s outstanding debt stock rose to P19.66 trillion, up 0.27% from P19.61 trillion as of end-August.

On a year-to-date basis, the running sovereign debt balance grew by 11.03% or P1.95 trillion, from the P17.71 trillion as of end-December 2025.

Of the total debt stock, domestic debt comprised 67.39%, while external obligations accounted for 32.61%.

Domestic debt stood at P13.25 trillion, up 0.07% or P8.78 billion, from the end-August level of P13.24 trillion.

“The increase was mainly due to the P7.66 billion net issuance of government securities, while peso depreciation against the US dollar

The Philippines’ sovereign debt piled up to a new historic high of P19.66 trillion as of the end of September, mostly driven by the peso’s weakness, which in turn raised the value of foreign currency-denominated obligations.

Year-to-date, domestic debt likewise rose by 9.34% or P1.13 trillion, from P12.12 trillion as of end-December 2025.

“The increase reflects the cumulative effect of financing activities, together with valuation effects arising from exchange rate movements,” the BTr said.

Foreign debt, meanwhile, grew by 0.70% or P44.69 billion to P6.41 trillion as of end-September from P6.37 trillion as of end-August.

“The increase was mainly attributable to the P40.12 billion increase in the peso value of foreign-currency denominated debt due to peso depreciation against the US dollar, and the P9.27 billion net availment of external loans,” the Treasury said.

“This was partly offset by the P4.70 billion valuation decrease resulting from favorable movements in third currencies against the US dollar,” the BTr said.

Year-to-date, external debt increased by 14.67% or P820.43 billion, as of end-September relative to the end-December 2025 level of P5.59 trillion.

“This resulted from a net external borrowing amounting to P462.85 billion and valuation effects from exchange rate movements amounting to P357.58 billion,” the Treasury said.

For 2026, the government plans to collect P4.81 trillion in revenues, but spend P6.793 trillion, leaving a gap that will largely be bridged by borrowing. The government’s 2027 spending program is proposed at P7.2 trillion, while the government plans to collect P5.21 trillion. —VAL, GMA News