Outstanding debt of the national government reached P15.893 trillion at the end of September, up 11 percent year-on-year due to double-digit growth in the issuance of government securities in the domestic market and in the availment of foreign loans.
Around P10.936 trillion, or 69 percent, of outstanding debt are sourced from the domestic market, primarily through weekly auctions of government securities, The strategic emphasis on local funding underscores the government’s commitment to minimizinging external financial risks and fostering the growth of the domestic bond market, thereby offering reliable investment opportunities to citizens.
The modest increase of just 2.2 percent in total debt from August 2024 highlights the government’s careful approach to financial management. This rise is largely attributed to net availments of both external and domestic debt, which together help to limit exposure to foreign liabilities.
Foreign debts account for P4.957 trillion, or 31 percent, of the total debt portfolio. External debt rose 4.2 percent from August due to P200.89 billion in net foreign borrowings, including P140.99 billion in new USD bonds aimed at supporting budgetary needs. However, favorable foreign exchange adjustments have mitigated some risks, leading to a net decrease of P2.43 billion in overall external debt, showcasing the government’s strategic management of currency fluctuations.
Obligations guaranteed by the national government have also seen an increase to a total P372.86 billion, up 2.9 percent year-on-year. This increase stems from new guarantees for key sectors such as the Power Sector Assets and Liabilities Management Corporation and the National Food Authority.
