The country’s net external liabilities increased by 5.4 percent in the first quarter of 2025, reaching ₱3.7 trillion from ₱3.5 trillion in the previous quarter, according to preliminary data from the Bangko Sentral ng Pilipinas (BSP) under the balance sheet approach (BSA).
The BSP attributed the rise to higher holdings of government-issued securities by nonresidents and increased loans from foreign creditors to the government. External borrowings by other depository corporations also contributed, reflecting greater dependence on foreign financing.
The general government’s net debtor position expanded as financial institutions and banks increased their investments in government securities, which now make up three-fourths of public sector liabilities. Notably, over two-thirds of these obligations are denominated in local currency, offering some protection against foreign exchange volatility.
On the household side, net creditor positions improved slightly due to higher investments in equity and fund shares. However, this gain was tempered by a drop in bank deposits and cash holdings, as well as a rise in household loans. Despite this, Filipino households remain financially resilient, with total assets nearly triple their liabilities.
The BSP’s balance sheet approach offers a broader perspective of the country’s financial stability and is published quarterly, following the release of the international investment position (IIP).
