The National Government’s (NG) total outstanding debt continued to decline, settling at P17.46 trillion as of end-September from its level at the end of August, reflecting ongoing fiscal discipline, a strategic borrowing strategy, and prudent liability management amid stable market conditions and solid investor confidence.
The total debt, however, was up from the end-September 2024 level of P15.89 trillion, lifted mainly the increase in the issuance of government securities.
Domestic borrowings remained the bulk of the total debt stock at 68.6 percent, consistent with the government’s policy of prioritizing local funding to reduce foreign exchange risks and further develop the domestic capital market.
Domestic debt dropped by 0.9 percent, or P114.13 billion, to P11.97 trillion as the government repaid more borrowings than it issued. Total repayments exceeded new issuances by P117.29 billion, offsetting the P3.16 billion upward revaluation caused by the peso’s depreciation against the retail dollar bonds.
Meanwhile, external debt inched up by 1.9 percent, or P101.04 billion, to P5.48 trillion at end-September. The increase was largely due to the weaker peso, which offset the P1.30 billion in net loan repayments and P2.1 billion in adjustments from third-currency fluctuations.
NG guaranteed obligations remained stable at P346.63 billion, up slightly by P0.17 billion or 0.05 percent from the previous month. The minor uptick reflected a P1.75 billion upward revaluation of guarantees due to the peso’s depreciation, tempered by P1.33 billion in combined net repayments and P0.25 billion in downward adjustments from currency movements.
Year-to-date, guaranteed obligations slipped by 0.01 percent or P0.03 billion, and by 7.03 percent or P26.23 billion year-on-year, underscoring the government’s continued efforts to maintain debt sustainability.
