PH Debt Hits PHP16.75T, Remains Sustainable in April 2025

The national government’s total outstanding debt reached PHP16.75 trillion as of end-April 2025, reflecting a modest 0.41% or PHP68.69 billion increase from March.

The uptick was tempered by the peso’s appreciation, which reduced the peso value of foreign borrowings despite continued financing in line with the government’s fiscal program.

Authorities continue to implement a disciplined debt strategy, ensuring that borrowings fund productive investments while maintaining fiscal sustainability.

With the economy outpacing debt growth, the Philippines remains on track to bring the debt-to-GDP ratio below 60% by the end of President Ferdinand Marcos Jr.’s term.

The fiscal deficit is also narrowing steadily and is projected to fall to around 3.8% by 2028.

Domestic debt amounted to PHP11.59 trillion, rising 1.85% or PHP211.02 billion month-on-month, buoyed by strong demand for government securities.

This includes PHP300 billion in benchmark bonds, indicating sustained investor confidence in the country’s fiscal direction.

The appreciation of the peso reduced the value of dollar-denominated domestic securities by PHP3.85 billion, helping offset additional debt.

External debt dropped by 2.68% or PHP142.33 billion, settling at PHP5.16 trillion as of end-April.

This was driven by the PHP124.74 billion decline in the peso valuation of external debt and net repayments totaling PHP58.28 billion.

Guaranteed obligations also fell by 0.68% or PHP2.32 billion to PHP337.54 billion.

This decline was due to net repayments of PHP1.75 billion in domestic guarantees and PHP2.14 billion in valuation adjustments from peso appreciation.

Domestic borrowings continued to dominate the debt mix, accounting for 69.2% of the total, while external debt made up 30.8%, slightly improving from the previous month.

This aligns with the government’s strategy to reduce exposure to foreign exchange and global market volatility.

The debt portfolio remains robust, with 91.7% of obligations at fixed interest rates and 82.0% classified as long-term.

This structure shields public finances from abrupt interest rate shifts and supports market stability.