Philippine NG debt hits PHP 17.65 trillion in November

The Treasury said the month-on-month increase was driven by the net issuance of domestic and external debt, partly offset by lower peso valuations of foreign currency-denominated obligations after the peso appreciated.

Domestic debt made up 68.66 percent of the total, while external obligations accounted for 31.34 percent, the agency said.

Domestic debt rose to PHP 12.12 trillion at the end of November 2025, up PHP 71.73 billion or 0.60 percent from PHP 12.05 trillion in October.

The Treasury attributed the domestic increase to PHP 71.85 billion in net issuance of government securities, despite a PHP 0.12 billion reduction in the peso valuation of retail dollar bonds.

From the start of 2025, domestic debt climbed 10.86 percent or PHP 1.19 trillion, with PHP 1.18 trillion coming from new debt issued to meet financing requirements.

The Treasury said PHP 2.52 billion of the year-to-date domestic increase was due to the peso weakening from its end-2024 level.

The agency reiterated the government’s strategy of relying mainly on domestic, peso-denominated borrowing to help keep debt sustainable because such obligations do not fluctuate with foreign exchange rates, and interest payments flow back to Filipino investors.

External debt edged up to PHP 5.53 trillion, an increase of 0.26 percent or PHP 14.11 billion from PHP 5.52 trillion in October.

The Treasury said the external uptick reflected PHP 22.84 billion in net loan availment during the month, partly offset by PHP 8.73 billion in downward valuation adjustments from favorable foreign exchange movements.

It said peso appreciation against the U.S. dollar trimmed foreign currency debt valuation by PHP 3.94 billion, while third-currency movements such as the Japanese yen and euro added another PHP 4.79 billion to the valuation cut.

The Treasury noted the peso strengthened slightly against the dollar to PHP 58.729 per USD 1 at the end of November from PHP 58.771 per USD 1 at the end of October 2025.

The government’s external financing operations remained “prudent” and “measured,” the Treasury said, with external borrowings largely concessional and program-based to secure long maturities and relatively lower interest costs.

The agency added that proceeds are directed to priority infrastructure and development programs with “high growth multipliers,” aimed at improving economic growth prospects and the capacity to service the debt burden.

From end-2024, external debt increased 8.01 percent or PHP 410.04 billion, with PHP 276.00 billion coming from new loans and bonds and PHP 134.04 billion from net valuation adjustments linked to peso depreciation against foreign currencies in the first 11 months of 2025.

National Government guaranteed obligations rose 3.38 percent or PHP 11.63 billion to PHP 356.04 billion at the end of November 2025 from PHP 344.41 billion a month earlier.

The Treasury said the increase was mainly due to the net availment of domestic guarantees by Power Sector Assets and Liabilities Management (PSALM) worth PHP 12.71 billion, while external guaranteed repayments and favorable exchange rate movements tempered the rise by PHP 0.42 billion and PHP 0.66 billion, respectively.