The national government (NG) debt fell by P95.07 billion, or 0.5 percent, in August 2025 to P17.47 trillion, the Bureau of the Treasury (BTr) said Tuesday, citing a major bond repayment and a stronger peso.
The decline was led by the government’s full repayment of its largest domestic bond for the year, worth P516.34 billion, and the effect of a stronger peso on the country’s external debt.
The debt reduction improved the country’s debt profile, as the share of domestic debt to total borrowings increased to 69.2 percent from 68.9 percent in July. This composition is considered more favorable because domestic debt is less vulnerable to foreign exchange fluctuations, the BTr said in a statement.
Domestic debt declined to P12.09 trillion, down P21.39 billion from the prior month. External debt fell P73.68 billion to P5.38 trillion.
The government has raised P1.84 trillion in gross domestic financing, including the issuance of Retail Treasury Bond Tranche 31 (RTB-31), which the government said demonstrated strong investor confidence.
Guaranteed debt also dropped in August to P346.46 billion, a P6.51 billion month-on-month decline, attributed primarily to the effect of the stronger peso on external guarantees.
