The Philippine government’s outstanding debt rose 0.41 percent to P18.55 trillion in May from P18.47 trillion in April, as the government continued to raise funds for its financing needs despite the ongoing Middle East conflict, the Bureau of the Treasury said Thursday.
Data showed that on a year-on-year basis, the debt stock increased 9.62 percent from P16,92 trillion in May 2025.
The Treasury said net incurrence of domestic securities drove the increase in total debt stock, while the peso’s appreciation against the US dollar and other foreign currencies tempered the rise.
Domestic debt grew 0.65 percent to P12.50 trillion in May from P12.42 trillion a month earlier. The agency attributed the higher domestic borrowings to a P80.23 billion net issuance of government securities and a stronger peso that trimmed P0.11 billion from onshore dollar bonds valuation.
External debt fell 0.07 percent to P6.05 trillion from P6.06 trillion in April as the peso rebounded. The favorable downward valuation effect of P18.91 billion outweighed P14.90 billion in net external debt availment, the bureau said.
Domestic debt made up 67.37 percent of the country’s total debt stock, while external obligations accounted for 32.63 percent.
“This reflects the government’s prudent debt management strategy of prioritizing domestic financing to support local capital markets, while reducing exposure to foreign exchange risks,” the Bureau of the Treasury said.
Guaranteed obligations climbed 15.73 percent to P443.50 billion from P383.23 billion, primarily due to the issuance of P61.62 billion in new domestic guarantees, but favorable revaluation effects and repayments of external guarantees partially offset the increase.