The Philippines’ outstanding national government debt ballooned to a record P18.49 trillion as of end-March 2026, as a sharp depreciation of the peso against the US dollar significantly increased the local currency value of the country’s foreign obligations.
Data released by the Bureau of the Treasury showed total debt rose by P328.43 billion, or 1.81 percent, from the end-February level, underscoring the growing impact of currency volatility on the government’s balance sheet amid global financial uncertainty.
While the government continued to rely mainly on domestic borrowing, the month’s debt increase was largely driven not by fresh external loans but by foreign exchange revaluation losses after the peso weakened by P3.039 against the US dollar.
External debt climbed 4.81 percent to P5.95 trillion, with currency movements alone adding P299.50 billion to the peso value of foreign-denominated obligations. The increase was partially offset by net repayments amounting to P2.55 billion and favorable third-currency adjustments that trimmed P23.92 billion from the total.
The latest figures highlight the vulnerability of debt metrics to exchange rate swings, particularly during periods of global market stress, elevated oil prices and strong demand for the US dollar.
Domestic debt, which continues to account for the bulk of government borrowings, rose more moderately to P12.53 trillion, up by P55.40 billion from the previous month. The increase was mainly driven by net issuance of government securities worth P46.72 billion, while peso depreciation also raised the value of foreign currency-denominated domestic securities by P8.68 billion.
Economists have said the government’s heavy reliance on local borrowings helps cushion the country from sharper external financing risks. However, persistent peso weakness could continue to pressure debt servicing costs and fiscal indicators in the coming months.
The debt increase comes as the government maintains elevated spending to support infrastructure, social services and economic growth, while also navigating tighter global financial conditions and rising import costs.
Meanwhile, national government guaranteed obligations edged up to P381.41 billion as of end-March, slightly higher by P1.42 billion from the previous month.
The increase was largely due to the revaluation impact of peso depreciation on external guarantees, which added P4.53 billion. This was partly offset by repayments on domestic and external guarantees totaling P2.26 billion, as well as favorable third-currency movements.
Compared with end-December 2025, guaranteed obligations increased by P36.83 billion, or 10.69 percent.
