The country’s net external liabilities rose by 7.1 percent to ₱3.7 trillion in the second quarter of 2025 from ₱3.5 trillion in the first quarter, based on preliminary Balance Sheet Approach (BSA) data.
The increase reflects higher foreign financing by non-financial corporations, mainly through equity investments and loans, as well as larger government borrowing from abroad. At the same time, the central bank reduced its holdings of debt securities issued by nonresidents.
Non-financial corporations recorded a wider net debtor position as foreign investors increased equity holdings. Loans remained the sector’s main source of funding, with most financing coming from abroad and from domestic banks.
The national government’s net liabilities also expanded due to higher issuance of government securities held by banks, foreign investors, and other financial institutions, along with increased foreign loans. Importantly, about 70 percent of government debt remained denominated in local currency, helping limit exposure to exchange-rate swings.
The BSA is a financial stability tool developed by the International Monetary Fund that looks at the stock of financial assets and liabilities of different sectors at a given point in time. By showing who owes what to whom, the BSA helps identify vulnerabilities and assess how shocks—such as changes in interest or exchange rates—could affect the broader economy.
