The Philippines’ outstanding external debt climbed to $149.09 billion as of the third quarter of 2025, a marginal 0.1 percent increase from the previous quarter, according to the Bangko Sentral ng Pilipinas (BSP).
The BSP said the debt level “remained broadly stable” in the third quarter and that the country’s external obligations stayed manageable, supported by solid economic conditions and prudent policies.
The slight quarter-on-quarter increase was led by the net acquisition of Philippine debt securities by non-resident investors, totaling $1.47 billion. This was partially offset by net repayments of $764.56 million and valuation adjustments of $442.50 million due to the appreciation of the US dollar during the reference period.
Data showed that on a year-on-year basis, the external debt saw a larger increase of 6.8 percent. This was attributed to new borrowings, including bond issuances by the government amounting to $3.33 billion and external financing secured by local banks totaling $1.58 billion.
The external debt level is equivalent to 30.9 percent of the gross domestic product (GDP), an improvement from the 31.2 percent recorded in the previous quarter, the BSP said.
It said key metrics indicate the debt burden remained sustainable.
The country’s short-term external debt based on the remaining maturity concept (STRM) stood at $27.16 billion as of end-September 2025. This is well-covered by the country’s gross international reserves (GIR) of $109.06 billion, providing 4.01 times cover for short-term obligations.
The GIR-to-STRM debt ratio in June 2025 was 3.85, a level the BSP noted is better than most of the country’s emerging economy peers.
The debt service ratio, a measure of the country’s capacity to service its debt, improved to 8.5 percent from 11.5 percent a year earlier.
This resulted from lower principal and interest payments by resident borrowers for the period.
The debt service ratio compares loan payments with the country’s income from exports and other inflows, with a lower ratio indicating that a smaller portion of foreign exchange earnings is used to repay external debt.
