The outstanding debt of the Philippine government rose to P16.92 trillion at the end of May 2025, up nearly 1 percent from April, according to the Bureau of the Treasury (BTr). Despite the increase, the agency described the debt level as “manageable,” citing steady market confidence and prudent borrowing strategies.
The increase was largely driven by net issuances of domestic government securities totaling P190.87 billion, reflecting sustained demand from local investors. This strong appetite for government debt, BTr said, highlights continued investor confidence in the Philippine economy.
Domestic borrowings remained the backbone of the debt stock, accounting for 70 percent, or P11.78 trillion. The 1.6 percent month-on-month rise in local debt was partially offset by the peso’s appreciation, which helped lower the peso value of foreign debt by P0.91 billion.
External debt declined by 0.5 percent to P5.14 trillion. The slide was due to P3.55 billion in net repayments and a favorable exchange rate that reduced the peso valuation of foreign borrowings by P29.35 billion. However, this was partly counterbalanced by a P9.14 billion revaluation from third-currency movements.
Government-guaranteed obligations also saw a slight increase of 1.8 percent, reaching P343.58 billion. The rise stemmed mainly from domestic guarantees, although some of the increase was softened by repayments and the stronger peso.
Since the start of 2025, guaranteed debt has declined by 0.89 percent. The Treasury reiterated its commitment to careful debt management and a preference for domestic financing to reduce currency risks and support local capital markets.
