Net issuance of government securities pushed the national government’s outstanding debt up by 0.49 percent to PHP17.65 trillion in November 2025, but the Bureau of the Treasury (BTr) said the level remains within target.
In a statement Wednesday, the BTr said the increase from PHP17.56 trillion in October was partly offset by “significantly lower valuations of foreign currency-denominated obligations due to the peso’s appreciation.”
Domestic debt accounted for 68.66 percent of total debt, while foreign debt made up 31.34 percent.
The BTr said domestic debt rose to PHP12.12 trillion from PHP12.05 trillion at end-October, driven by PHP71.85 billion in net issuance of government securities, despite a PHP0.12-billion reduction in the peso valuation of retail dollar bonds (RDBs).
Since the start of the year, domestic debt has increased by 10.86 percent, or PHP1.19 trillion. Of this amount, PHP1.18 trillion came from new debt issued to meet financing requirements, while the remaining PHP2.52 billion resulted from peso depreciation against the US dollar.
“Borrowing predominantly from domestic creditors and in local currency has been a key strategy to keep debt sustainable,” the BTr said, noting that peso-denominated obligations are insulated from foreign exchange fluctuations and interest payments benefit Filipino investors.
External debt rose slightly to PHP5.53 trillion from PHP5.52 trillion in October, due to PHP22.84 billion in net loan availments, partly offset by PHP8.73 billion in downward valuation adjustments from favorable exchange rate movements.
The BTr said peso appreciation against the U.S. dollar reduced foreign currency debt valuation by PHP3.94 billion, while movements in third currencies such as the Japanese yen and euro cut valuations by another PHP4.79 billion.
The Treasury assured the public that external financing remains “prudent, measured, and anchored on long-term debt sustainability,” adding that borrowings are largely concessional, long-term, and low-cost.
It said proceeds are directed toward priority infrastructure and development programs that support economic growth and strengthen debt-servicing capacity.
In a report, Rizal Commercial Banking Corporation chief economist Michael Ricafort cited former Finance Secretary and current Executive Secretary Ralph Recto’s November statement on prioritizing governance reforms to contain debt growth.
This move, Ricafort said, “could help narrow the national government budget deficit and, in turn, help temper any further increase in the outstanding national government debt, going forward.” (PNA)
