The outstanding debt of the Philippine government reached P16.63 trillion as of end-February 2025, rising by P319.26 billion or 1.96 percent from the previous month’s, the Bureau of the Treasury said Tuesday.
“The rise was primarily driven by the net issuance of new domestic and external debt to support more public programs and projects. Nevertheless, the increase was partially offset by the strengthening of the peso against the US dollar, which appreciated from P58.375 at the end of January to P57.990 at the end of February, helping manage foreign debt obligations,” the Treasury said.
Data showed that on a year-on-year basis, debt increased 9.57 percent, or P1.45 trillion, from P15.18 trillion in February 2024.
The BTr said of the total, domestic debt remained the primary component of national government borrowing, accounting for 67.5 percent of the total obligations. External borrowings represented 32.5 percent of the total.
“This financing mix reflects a prudent approach to debt management to help mitigate exposure to external risks while taking advantage of the country’s liquid domestic market,” the Treasury said.
The end-February 2025 level of domestic debt reached P11.22 trillion, up by P139.62 billion, or 1.26 percent, from its end-January 2025 level. This was mainly due to P140.72 billion in net domestic financing, as the P268.25 billion gross issuance of government securities exceeded redemptions of P127.53 billion for the month.
The peso’s appreciation against the US dollar contributed to a P1.10-billion reduction in the overall domestic debt valuation, helping temper the increase.
Foreign debt stood at P5.41 trillion as of end-February 2025, registering a P179.64 billion, or 3.44-percent increase from the previous month. This was attributed to the net availment of foreign borrowing amounting to P193.71 billion and the P20.41 billion net appreciation effect on third-currency-denominated debt.
These factors were partially offset by a P34.48 billion reduction due to peso appreciation against the greenback.
The national government secured P197.30 billion in external financing in February, including P190.82 billion through a triple-tranche global bond issuance comprised of 10- and 25- year US dollar bonds ($2.25 billion), and 25-year EUR bonds (1 billion euros) and P6.48 billion in project loans.
Project loans were used on rail projects through Japan International Cooperation Agency (P3.86 billion), physical connectivity and health sector interventions in partnership with Asian Development Bank (P1.71 billion), and agricultural and health sector programs assisted by the International Bank for Reconstruction and Development (P0.91 billion).
Meanwhile, the end-February 2025 level of NG-guaranteed obligations declined by P5.16 billion or 1.49 percent to P341.11 billion from P346.27 billion in the previous month. The decrease resulted from the net repayment of both domestic and external guarantees, amounting to P5.83 billion and P0.15 billion, respectively.