Despite reaching another record high, the Bureau of the Treasury (BTr) said the debt level “remains manageable” and aligned with the government’s fiscal strategy to support economic growth.
The rise in debt was attributed to new borrowings from both domestic and external sources, as well as the peso’s depreciation against the US dollar, which weakened from P57.847 in December 2024 to P58.375 in January 2025.
Breakdown of debt stock
Domestic debt stood at P11.08 trillion, increasing by P153.68 billion or 1.41 percent month-over-month. The government issued P270.01 billion in securities while repaying P117.84 billion, resulting in net issuances of P152.17 billion to help cover the budget deficit. The peso’s devaluation added P1.51 billion to the total.
External debt rose to P5.23 trillion, up by P107.79 billion or 2.1 percent from the previous month. The increase was driven by net foreign loan availments of P59.30 billion, along with currency revaluation effects of P46.74 billion from US dollar movements and P1.75 billion from other foreign currencies.
Meanwhile, government-guaranteed obligations fell slightly to P346.27 billion, reflecting a P0.39 billion decline due to net repayments exceeding currency valuation adjustments.
The government continues to manage its debt portfolio carefully, balancing financing needs with fiscal sustainability, the BTr said.
