Philippines debt climbs to P17.3 trillion in June

MANILA, Philippines — The country’s outstanding debt breached the P17-trillion mark as of end-June, amid strong investor demand for government securities, the Bureau of the Treasury (BTr) said.

Based on the latest Treasury data, the national government’s outstanding debt inched up by 2.1 percent to a record high of P17.27 trillion as of end-June from P16.92 trillion as of end-May. The amount is also 11.5 percent higher than the same period last year at P15.5 trillion.

The total debt is already 99.5 percent of the 2025 total debt expectation of P17.35 trillion.

“The national government’s total outstanding debt remains sustainable at P17.27 trillion as of end-June 2025, reflecting a 2.1 percent increase from the previous month due to strong investor demand for government securities,” the Treasury said.

The debt stock was mainly funded through domestic borrowings at 69.2 percent, while external borrowings accounted for 30.8 percent.

BTr data showed that the total domestic debt level reached P11.95 trillion, slightly up by 1.4 percent from P11.8 trillion in May.

Meanwhile, total external debt in the first half increased by 3.5 percent to P5.32 trillion from P5.13 trillion of the previous month.

“This strategy is consistent with the government’s goal to boost the local capital market while lowering foreign exchange risks and building investor trust in Philippine-issued securities,” the Treasury said.

External debt securities widened by 1.7 percent to P2.71 trillion compared to a month ago, while domestic debt securities rose by 1.4 percent to nearly P12 trillion month-on-month.

For the guaranteed obligations, the Treasury reported a stable marginal increase of 0.4 percent to P345.11 billion recorded in May.

“The year-to-date decline of P4.33 billion since end-2024 highlights continued efforts to manage contingent liabilities while supporting essential sectors,” it said.

The Treasury said this reflects the national government’s careful approach to managing debt and the commitment of the Marcos administration to maintaining fiscal sustainability.