PH debt balloons to P17.65 trillion as of end-November 2025

The Philippines’ sovereign debt has ballooned further to a fresh record-high as of end-November 2025 amid continued borrowing efforts by the government to back its budgetary requirements, according to data released by the Bureau of the Treasury (BTr).

Treasury data showed that the national government’s outstanding debt stood at P17.65 trillion, up 0.49% or P85.84 billion from P17.56 trillion level as of end-October 2025.

The BTr said the amount was “consistent” with the full-year borrowing program, albeit above the debt ceiling of P17.35 trillion for 2025.

“The month-on-month increase was underpinned by the net issuance of domestic and external debt, which was partly offset by significantly lower valuations of foreign currency-denominated obligations due to the peso’s appreciation,” the Treasury said.

It noted that the Philippine currency appreciated against the US dollar from P58.771:$1 at the of October 2025 to P58.729:$1 at the end of November 2025.

Of the total sovereign debt, domestic borrowings accounted for the lion’s share of 68.66%, while foreign obligations comprised the remainder at 31.34%.

In particular, domestic debt amounted to P12.12 trillion, up 0.60% or by P71.73 billion from P12.05 trillion in the prior month.

“This was driven by the P71.85 billion in net issuance of government securities, despite a P0.12 billion reduction in peso valuation on retail dollar bonds (RDBs),” the BTr said.

The Treasury noted that since the beginning of 2025, local borrowings have grown by 10.86% or P1.19 trillion.

Of the amount, P1.18 trillion was incurred from the issuance of new debt “to fulfill financing requirements.”

The other P2.52 billion, on the other hand, was due to the weakening of the peso from its level at the end of 2024.

“Borrowing predominantly from domestic creditors and in local currency has been one of the main strategies pursued by the government to keep its debt sustainable,” the Treasury said, adding that “peso obligations do not fluctuate with foreign exchange rates and the payment of interest redounds to the benefit of Filipino investors, further boosting domestic income.”

The government’s foreign or external debt, meanwhile, stood at P5.53 trillion, up 0.26% or by P14.11 billion from the end-October 2025 level of P5.52 trillion.

“This is due to the P22.84 billion in net loan availment for the month, which was offset by the P8.73 billion in downward valuation adjustments caused by favorable foreign exchange movements,” the BTr said. 

It added that the peso’s appreciation against the US dollar trimmed foreign currency debt valuation by P3.94 billion, while third-currency movements – such as Japanese yen and Euro – added another P4.79 billion to the valuation cut.

“The national government’s external financing operations remained prudent, measured, and anchored on long-term debt sustainability considerations,” the Treasury said.

“External borrowings continue to be largely concessional and program-based, offering very long maturity terms and relatively lower interest costs, thereby supporting a cost-effective and resilient debt profile. Proceeds are also directed toward priority infrastructure and development programs that offer high growth multipliers, improving the economy’s growth prospects and capacity to service the debt burden,” it said.

From the end of 2024, external debt has risen by 8.01% or P410.04 billion, the BTr said.

Of the total increment, P276 billion was due to new loans and bonds, while P134.04 billion was net adjustments to valuation linked to peso depreciation against foreign currencies in the first 11 months of 2025.

For this year, the country’s sovereign debt is expected to rise to P19.057 trillion, according the Budget of Expenditures and Sources of Financing for fiscal year 2026.

Then Finance Secretary Ralph Recto, now the Executive Secretary, earlier said the country’s debt stock could ballon to as much as P20 trillion by the the end of President Ferdinand Marcos Jr.’s term in 2028. — JMA, GMA Integrated News