PH debt expected to decline by December 2025 — Bureau of the Treasury

The country’s outstanding debt of P17.56 trillion as of end-July 2025 is expected to decline towards the end of the year, according to the the Bureau of the Treasury (BTr).

The BTr is set to pay off P814.2 billion worth of domestic bonds by December 2025 with fundraising activities winding down.

"The national government’s borrowings are used to support key infrastructure and development initiatives in education, healthcare, agriculture, and social services, among other priorities of the Marcos Jr. administration," the Treasury bureau said in a statement.

“To mitigate exposure to foreign exchange risk, the government continued to favor domestic borrowings to deepen the local capital market, attaining a financing blend comprised of 76% domestic financing and 24% external borrowing in the first seven months of the year,” the BTr also said.

The result, the BTr said, is that the domestic component of the debt stock improved to 68.9% at the end of July from 68.1% at the end of 2024.

The Treasury said the "Marcos, Jr. administration remains steadfast in its commitment to prudent debt management by leveraging strong investor confidence in peso-denominated securities while ensuring that borrowings are at the lowest possible cost and support fiscal sustainability, inclusive growth, and a stronger Philippine economy."

"The government will strictly adhere to its refined Medium-Term Fiscal Program to remain on track with its targets, ensuring fiscal prudence and long-term debt sustainability," the bureau added.

The Philippine government’s total outstanding debt surpassed the P17-trillion mark in June as the administration issued securities during the month, the BTr earlier reported. — BAP, GMA Integrated News