Philippine external debt eases to USD 147.35 billion

The Philippines’ outstanding external debt slipped to USD 147.35 billion at the end of March 2026 from USD 147.65 billion a quarter earlier, with the Bangko Sentral ng Pilipinas saying the country’s debt position remained manageable.

The BSP said external debt, or borrowings owed by Philippine residents to nonresidents, eased quarter on quarter as nonresident holdings of Philippine debt securities declined.

The central bank said the decline reflected more cautious investor sentiment and tighter financing conditions for emerging markets during the quarter.

External debt as a share of gross domestic product improved to 30.0 percent from 30.3 percent in the previous quarter, even as economic growth slowed.

Liquidity conditions also strengthened, with short-term external debt based on the remaining maturity concept declining to USD 25.50 billion.

The BSP said gross international reserves stood at USD 106.64 billion, equivalent to 4.18 times short-term external debt under the remaining maturity concept.

The reserve ratio indicated the Philippines retained a strong capacity to meet near-term external commitments and a reserve adequacy position considered robust compared with emerging economy peers, the BSP said.

The debt service ratio remained moderate at 9.5 percent, although it was higher than the 8.5 percent recorded a year earlier because of increased principal payments.

Year on year, external debt rose slightly from USD 146.74 billion at the end of March 2025.

The BSP said the annual increase was driven mainly by new borrowings by the national government and the private sector, reflecting financing for development priorities and support for trade and business activity.

The country’s external debt profile remained resilient, with developments mainly reflecting market-driven adjustments and financing requirements, the BSP said.

Public sector external debt rose to USD 95.66 billion in March 2026 from USD 94.87 billion in 2025, while private sector external debt fell to USD 51.70 billion from USD 52.78 billion.

By maturity, short-term external debt declined to USD 18.09 billion from USD 20.23 billion, while medium- and long-term debt rose to USD 129.27 billion from USD 127.42 billion.

By creditor type, multilateral debt increased to USD 42.63 billion, including USD 16.23 billion owed to the International Bank for Reconstruction and Development and USD 18.86 billion owed to the Asian Development Bank.

Debt owed to bondholders and noteholders stood at USD 47.53 billion, while obligations to banks and other financial institutions reached USD 31.58 billion.

By country and creditor group, the largest external debt sources were bondholders and noteholders at USD 47.53 billion, multilateral agencies at USD 42.63 billion, Japan at USD 16.27 billion, the United Kingdom at USD 4.87 billion, China at USD 4.55 billion, the United States at USD 2.48 billion, France at USD 2.43 billion, and Germany at USD 1.45 billion.

By currency, USD-denominated obligations accounted for USD 106.74 billion, followed by Japanese yen-denominated debt at USD 12.63 billion, Special Drawing Rights at USD 3.85 billion, and other currencies at USD 24.14 billion.

The BSP said short-term debt under the remaining maturity concept includes 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 measures principal and interest payments against receipts from exports of goods and services and primary income, with a lower ratio indicating that a smaller share of foreign exchange earnings is used to repay external debt.

Historical BSP data showed total external debt rising from USD 73.10 billion in 2017 to USD 78.96 billion in 2018, USD 83.62 billion in 2019, USD 98.49 billion in 2020, USD 106.43 billion in 2021, USD 111.27 billion in 2022, USD 125.39 billion in 2023, USD 137.63 billion in 2024, USD 147.65 billion in 2025, and USD 147.35 billion in March 2026.

External debt-to-GDP ratios were 22.3 percent in 2017, 22.8 percent in 2018, 22.2 percent in 2019, 27.2 percent in 2020, 27.0 percent in 2021, 27.5 percent in 2022, 28.7 percent in 2023, 29.8 percent in 2024, 30.3 percent in 2025, and 30.0 percent in March 2026.

The BSP’s historical table showed the debt service burden at 6.2 percent in 2017, 6.6 percent in 2018, 6.7 percent in 2019, 6.7 percent in 2020, 7.5 percent in 2021, 6.3 percent in 2022, 10.3 percent in 2023, 11.5 percent in 2024, 8.3 percent in 2025, and 9.5 percent in March 2026.

Gross international reserves as a share of short-term debt based on remaining maturity stood at 419.3 percent in 2017, 364.9 percent in 2018, 396.5 percent in 2019, 520.2 percent in 2020, 552.2 percent in 2021, 394.4 percent in 2022, 401.2 percent in 2023, 407.9 percent in 2024, 413.3 percent in 2025, and 418.2 percent in March 2026.

The public sector external debt-to-GDP ratio was 11.4 percent from 2017 to 2019, 16.1 percent in 2020, 16.2 percent in 2021, 16.7 percent in 2022, 17.8 percent in 2023, 18.5 percent in 2024, and 19.5 percent in 2025 and March 2026.

The private sector external debt-to-GDP ratio was 10.8 percent in 2017, 11.3 percent in 2018, 10.8 percent in 2019, 11.2 percent in 2020, 10.8 percent in 2021, 10.8 percent in 2022, 10.9 percent in 2023, 11.3 percent in 2024, 10.8 percent in 2025, and 10.5 percent in March 2026.

The BSP said historical debt profiles and key external debt indicators were compiled by its International Operations Department.