The Philippines’ outstanding external debt fell 1.0 percent to $147.65 billion in the fourth quarter of 2025 from $149.09 billion in the third quarter, as non-residents sold local debt securities and valuation adjustments lowered the total stock, the Bangko Senttral ng Pilipinas said Friday.
BSP data showed non-residents sold $2.28 billion worth of local debt securities. Net valuation adjustments, reflecting lower US dollar valuations of borrowings in other currencies, further reduced the debt by $659.38 million.
“These developments partly offset the effect of net availments totaling $1.44 billion during the quarter,” the BSP said.
Debt manageability improved as external debt as a share of gross domestic product eased to 30.3 percent, despite cautious market sentiment and weaker-than-expected economic growth.
Short-term external debt based on remaining maturity stood at $26.80 billion as of end-December. The BSP said gross international reserves of $110.83 billion, equivalent to a 4.14 times cover, provided adequate buffers to meet near-term obligations and indicated a strong reserve adequacy position compared with other emerging economies.
On an annual basis, the debt service ratio improved to 8.3 percent from 11.5 percent as principal and interest payments declined.
However, total external debt grew 7.3 percent year-on-year due to new borrowings.
These included $3.29 billion in government bond issuances and $3.72 billion in external financing for private banks.
The BSP said the yearly increase also reflected $1.34 billion in net valuation adjustments and $1.23 billion in net acquisitions of domestic debt securities by non-residents.
