Philippine external debt dips in Q4 2025

The Philippines’ outstanding external debt fell 1.0 percent in the fourth quarter of 2025, while key debt-manageability indicators posted slight improvements, according to a Bangko Sentral ng Pilipinas press release dated March 13, 2026.

BSP said the country’s external debt stock declined to USD 147.65 billion in December 2025 from USD 149.09 billion in September 2025.

The central bank attributed the quarter-on-quarter drop largely to net sales by non-residents of USD 2.28 billion worth of Philippine debt securities.

It said net valuation adjustments also trimmed the debt stock by USD 659.38 million as the USD value of borrowings denominated in other currencies fell. Those factors partly offset net availments totaling USD 1.44 billion during the quarter.

BSP said the external debt-to-gross domestic product ratio, one of its main gauges of debt manageability, improved to 30.3 percent from 30.9 percent in the previous quarter.

Short-term external debt based on the remaining maturity concept rose to USD 26.80 billion from USD 26.36 billion in the previous quarter.

Even with that increase, the country’s gross international reserves of USD 110.83 billion provided what BSP described as adequate buffers against near-term obligations.

The reserves covered short-term debt 4.14 times, which BSP said reflected a strong reserve adequacy position relative to emerging economy peers.

Another measure of repayment capacity, the debt service ratio, improved to 8.3 percent from 11.5 percent a year earlier.

BSP said the lower ratio reflected reduced principal and interest payments during the period.

On a year-on-year basis, however, the country’s external debt still increased 7.3 percent.

That annual rise was driven mainly by fresh borrowings, including USD 3.29 billion in bond issuances by the National Government. It was also driven by USD 3.72 billion in external financing tapped by private sector banks.

BSP added that the annual increase reflected net valuation adjustments of USD 1.34 billion.

The debt stock also rose because of net acquisition by non-residents of USD 1.23 billion in Philippine debt securities.

External debt refers to borrowings owed by Philippine residents to non-residents, based on the BSP’s definition in the release.

BSP defines short-term external debt under the remaining maturity concept as loans with original maturities of one year or less, plus amortizations on medium- and long-term accounts falling due within the next 12 months.

The debt service ratio compares the country’s principal and interest payments with receipts from exports of goods and services and primary income, which BSP uses as a measure of the adequacy of foreign exchange earnings to meet maturing obligations.

A lower debt service ratio is generally considered favorable because it means a smaller share of external earnings is used to repay debt, leaving more room for growth and stronger buffers against external shocks.

BSP data shows that the total Philippine external debt rising over the past decade from USD 74.76 billion in 2016 to USD 147.65 billion in December 2025.

By borrower, public sector external debt stood at USD 94.87 billion in December 2025, down from USD 96.30 billion in September 2025. Within the public sector, banks accounted for USD 5.84 billion in December 2025, compared with USD 5.70 billion in September 2025.

Within those public sector bank obligations, the Bangko Sentral ng Pilipinas accounted for USD 3.91 billion in December 2025, from USD 3.91 billion in September 2025.

Other public sector bank obligations rose to USD 1.93 billion in December 2025 from USD 1.79 billion in September 2025.

Public sector non-bank debt, listed as National Government and others, declined to USD 89.03 billion in December 2025 from USD 90.60 billion in September 2025.

Private sector external debt was broadly steady at USD 52.78 billion in December 2025, compared with USD 52.80 billion in September 2025. Private sector bank debt edged down to USD 23.14 billion in December 2025 from USD 23.27 billion in September 2025.

Foreign bank borrowings slipped to USD 5.03 billion in December 2025 from USD 5.10 billion in September 2025. Domestic bank borrowings eased to USD 18.11 billion in December 2025 from USD 18.17 billion in September 2025.

Private sector non-bank debt inched up to USD 29.65 billion in December 2025 from USD 29.53 billion in September 2025.

By maturity, short-term debt fell to USD 20.23 billion in December 2025 from USD 20.91 billion in September 2025.

Trade-related short-term debt declined to USD 2.36 billion in December 2025 from USD 2.46 billion in September 2025. Non-trade short-term debt fell to USD 17.88 billion in December 2025 from USD 18.45 billion in September 2025.

Medium- and long-term debt decreased to USD 127.42 billion in December 2025 from USD 128.18 billion in September 2025.

By creditor type, multilateral debt rose to USD 41.39 billion in December 2025 from USD 40.17 billion in September 2025. Within multilateral debt, obligations to the International Bank for Reconstruction and Development increased to USD 16.14 billion from USD 15.61 billion.

Obligations to the Asian Development Bank rose to USD 17.60 billion from USD 17.06 billion.

Allocation of Special Drawing Rights slipped slightly to USD 3.83 billion from USD 3.83 billion, after rounding.

Bilateral debt increased to USD 18.85 billion in December 2025 from USD 18.01 billion in September 2025. Of that bilateral debt, export credit agency exposure rose to USD 1.08 billion in December 2025 from USD 977 million in September 2025.

Bondholders and noteholders accounted for USD 48.95 billion in December 2025, down from USD 51.21 billion in September 2025.

Banks and other financial institutions accounted for USD 31.61 billion in December 2025, down from USD 32.21 billion in September 2025. Suppliers and exporters accounted for USD 4.12 billion in December 2025, down from USD 4.37 billion in September 2025.

Other creditor types accounted for USD 2.73 billion in December 2025, down from USD 3.12 billion in September 2025.

By country, Japan remained the largest listed bilateral country creditor at USD 16.58 billion in December 2025, up from USD 16.06 billion in September 2025. Philippine obligations to China rose to USD 4.90 billion in December 2025 from USD 4.35 billion in September 2025.

Philippine obligations to the United States declined to USD 2.33 billion in December 2025 from USD 3.36 billion in September 2025. Obligations to the United Kingdom increased to USD 4.00 billion in December 2025 from USD 2.60 billion in September 2025.

Obligations to France fell to USD 2.31 billion in December 2025 from USD 2.63 billion in September 2025. Exposure to Germany declined to USD 1.59 billion in December 2025 from USD 2.16 billion in September 2025.

Other countries accounted for USD 25.60 billion in December 2025, down from USD 26.55 billion in September 2025.

Multilateral agencies accounted for USD 41.39 billion in December 2025, up from USD 40.17 billion in September 2025.

Bondholders and noteholders by country grouping accounted for USD 48.95 billion in December 2025, down from USD 51.21 billion in September 2025.

By currency, USD-denominated debt stood at USD 106.13 billion in December 2025, up from USD 105.68 billion in September 2025.

Japanese yen-denominated debt totaled USD 11.40 billion in December 2025, up from USD 11.39 billion in September 2025.

Special Drawing Rights-denominated debt stood at USD 3.89 billion in December 2025, down slightly from USD 3.90 billion in September 2025.

Debt in other currencies fell to USD 26.24 billion in December 2025 from USD 28.13 billion in September 2025.