PH debt hits P18.13T in January 2026 as gov’t frontloaded borrowing

Philippine government debt climbed further to P18.13 trillion in January 2026 as the administration frontloaded issuances to secure concessional financing terms ahead of global uncertainties, but the Bureau of the Treasury (BTr) said levels remain sustainable.

Data released by the BTr showed that the national government’s debt grew 2.41% from P17.707 trillion in December, and by 11.16% from P16.312 trillion in January 2025.

“This level remains sustainable amid pressing challenges in the domestic and global landscape,” the BTr said in an accompanying statement.

The month-on-month increase mainly reflects the government’s strategy of frontloading domestic and external issuances to secure concessional financing terms ahead of global market uncertainties that can further raise interest costs,” it added.

Domestic debt accounted for P12.324 trillion, equivalent to 68.0% of the total debt stock. This reflects a 1.72% increase from P12.116 trillion the previous month, and an 11.19% jump from P11.084 trillion the same month last year.

Government securities posted a net incurrence of P208.05 billion from the previous month, as the administration prioritized local sources of funding in line with efforts to stay with stable investment options.

This brought the valuation of foreign currency-denominated domestic securities to P0.47 billion.

External obligations, meanwhile, grew 3.89% to P5.809 trillion from P5.591 trillion in December, and by 11.10% from P5.228 trillion the same month last year.

The BTr attributed the growth to the issuance of new global bonds and P191.02 billion worth of net availments of official development assistance from international development partners. This was also due to the upward revaluation of foreign currency-denominated debt caused by the peso depreciation.

The Philippine peso closed January 2, 2206, the first trading day of the year, at P58.841:$1, and ended the month at P58.86:$1. This compares with the P58.79:$1 on December 29, 2025, the last trading day of the past year.

“The recent increase in external borrowings was a strategic and timely approach to capitalize on a narrow window of favorable international credit conditions,” the BTr said.—LDF, GMA Integrated News