The Philippines’ net external liabilities increased 7.1 percent to P3.7 trillion in the second quarter of 2025 as non-financial corporations sought more foreign financing and government borrowing rose, the Bangko Sentral ng Pilipinas (BSP) said Monday.
The BSP said the figure was up from P3.5 trillion in the previous quarter. The rise in liabilities was led by non-financial corporations (NFC) increasing their external financing through equity and investment fund shares, alongside a rise in loans owed by the general government to nonresidents.
NFC net liabilities grew 1.8 percent quarter-on-quarter to P11.9 trillion. The BSP noted that the rest of the world and other financial corporations (OFC) increased their holdings of NFC-issued equity securities.
Loans remained the primary funding instrument for the sector, followed by equity securities, with major financing sourced from the rest of the world and other depository corporations (ODC).
The general government’s net debtor position climbed 1.3 percent from the previous quarter to P10.5 trillion. This growth was fueled by higher government securities held by the rest of the world, ODCs and OFCs, as well as an uptick in loans owed to nonresidents.
The BSP said 70.1 percent of government obligations were denominated in the domestic currency, which helped insulate the sector from volatile exchange rate fluctuations. Meanwhile, the BSP’s own investments in debt securities issued by nonresidents saw a decline during the period.
Philippine households maintained their status as net creditors, with net financial assets increasing 0.3 percent to P15.30 trillion. This marginal growth was attributed to higher deposits made to ODCs.
Other depository corporations recorded an 8.9-percent drop in their net creditor position to P1.6 trillion. The BSP attributed this decline to lower reverse repurchase placements, reduced holdings of debt securities issued by the central bank, and a rise in deposit liabilities to households.
