The Philippines government’s outstanding debt reached P16.75 trillion as of end-April 2025, a modest 0.41-percent (P68.69 billion) increase from the previous month, attributed to the strong peso.
“The uptick was minimized by the significant appreciation of the peso, which reduced the effect of additional borrowings in line with the fiscal program,” the Bureau of the Treasury said Tuesday.
The government continues to follow a disciplined debt strategy, ensuring that borrowings support productive investments while maintaining fiscal sustainability, it said.
It said that with the economy growing faster than its obligations, the country remains on track to reduce the debt-to-GDP ratio to below 60 percent by the end of the president’s term. The fiscal deficit has also been steadily narrowing and is on track to drop to about 3.8 percent by 2028.
Domestic debt amounted to P11.59 trillion as of the end of April 2025, up slightly by 1.85 percent (P211.02 billion) month-on-month.
This was supported by strong demand for government securities, including P300 billion in benchmark bonds, reflecting investors’ sustained confidence in the government’s fiscal program.
“With sound economic fundamentals, the country continues to enjoy strong market access at reasonable rates. The local currency’s appreciation also reduced the peso value of dollar-denominated domestic securities by P3.85 billion,” the Treasury said.
External debt declined to P5.16 trillion, down 2.68 percent (P142.33 billion) from the end-March level. The reduction was primarily due to a P124.74-billion decrease in the peso value of external debt owing to peso appreciation, combined with net repayments of P58.28 billion.
Meanwhile, national government-guaranteed obligations also decreased by 0.68 percent (P2.32 billion) to P337.54 billion at the end of April 2025. The decline was due to the net repayment of domestic guarantees amounting to P1.75 billion and a P2.14 billion lower valuation arising from peso appreciation.
The Treasury said that as of end-April 2025, domestic debt continued to account for the majority of the total debt stock at 69.2 percent, while external obligations comprised 30.8 percent, an improvement over the prior month’s ratio.
This aligns with the national government’s thrust to reduce exposure to external vulnerabilities, it said.
The debt portfolio remains resilient, with 91.7 percent of obligations carrying fixed interest rates and 82.0 percent classified as long-term. This structure helps insulate public finances from abrupt changes in interest rates and the market environment, the Treasury said.