THE PHILIPPINE government’s total liabilities rose to P17.71 trillion at end-2025, but the Bureau of the Treasury (BTr) said the debt portfolio “remained resilient” as most obligations were sourced domestically.
BTr data released Tuesday, February 3, showed total debt as of December 2025 increased by 10.32 percent from P16.05 trillion at end-2024.
“The increase is due to the government’s strategic net issuance of debt instruments to fund development programs, as well as the valuation effects of peso depreciation against the US dollar and third currencies,” the BTr said in a news release.
Domestic creditors accounted for 68.4 percent of the total, or P12.12 trillion, while foreign-currency denominated liabilities stood at P5.59 trillion.
“By prioritizing peso-denominated financing, which is predominantly held domestically, the government reduces exposure to exchange rate volatility. It also keeps interest payments within the domestic economy and provides Filipinos with a stable and secure investment option,” the BTr said.
The government sources funds through the issuance of debt papers such as treasury bonds (T-bonds), treasury bills (T-bills), retail treasury bond (RTBs), and foreign currency-denominated debt papers and loans.
Domestic debt increased by P1.19 trillion year-on-year in 2025, while foreign debt rose by P47 billion from P5.12 trillion in 2024.
The BTr said the national government recorded net domestic financing of P1.18 trillion last year, “demonstrating sustained investor confidence in government securities amid evolving market conditions.”
“External financing remained prudent and largely concessional. This results in a net external financing level of P317.02 billion from global bond issuances and program and project loans to support infrastructure, social reform, and agriculture and industry sectors,” it added.
Guaranteed obligations declined by 0.60 percent, or P2.09 billion, to P344.57 billion due to net repayments of domestic and external guarantees. Guaranteed debt stood at about 1.2 percent of gross domestic product, indicating minimal contingent debt risks. (PNA)
