PH debt balloons to nearly P17 trillion 

The Philippines’ running sovereign debt stock has ballooned further to a fresh record-high of nearly P17 trillion as of end-May 2025 amid continued capital raising efforts by the government to back its budgetary requirements, data released by the Bureau of the Treasury (BTr) showed Thursday.

The national government’s outstanding debt stood at P16.92 trillion as of end-May this year, up 0.99% from the end-April level of P16.75 trillion.

“The minimal increase was primarily driven by the successful net issuances of new domestic securities, which reflect sustained investor confidence in the Philippine economy,” the Treasury said.

“This was partially offset by the valuation effects of a stronger peso, helping reduce the value of external obligations,” it added.

The Treasury said the country’s sovereign debt profile during the period was mostly comprised of domestic borrowings at 69.6%, while the remaining 30.4% was foreign obligations.

“This reflects the government’s strong bias for domestically sourced financing, which helps mitigate foreign exchange risks and strengthen the local capital market,” the BTr said.

“The government remains committed to its prudent debt management strategy, ensuring borrowings are strategically aligned with fiscal objectives and overall macroeconomic stability,” it added.

In particular, domestic debt amounted to P11.78 trillion as of end-May, up 1.64% from P11.59 trillion as of end-April “mainly due to net issuances totaling P190.87 billion, but it was slightly tempered by the P0.91 billion downward valuation effect of a stronger peso against the US dollar.”

Foreign debt, meanwhile, went down by 0.46% to P5.14 trillion from P5.16 trillion month-on-month on the back of the “P3.55 billion in net repayments and the strengthening of the peso, which reduced the peso value of foreign debt by P29.35 billion.”

“These were partly offset by a P9.14 billion revaluation resulting from third-currency fluctuations against the US dollar,” the Treasury said. —LDF, GMA Integrated News