The Philippine government’s total debt reached an unprecedented P15.89 trillion by the end of September, driven by additional external and domestic borrowing, as reported by the Bureau of the Treasury. This new debt level marks an 11.4% increase from the P14.27 trillion recorded in the same period last year.
In September alone, the government accumulated P343.11 billion in fresh debts, divided between domestic and external sources. Despite the record-breaking debt, the Treasury assures that it remains manageable, with the majority – about 68.81% – sourced locally. This approach, the agency stated, minimizes exposure to external risks and bolsters the local bond market, offering Filipinos investment opportunities.
Total domestic debt rose to P10.94 trillion, up 1.3% from August, attributed to the net issuance of government securities, although this was slightly offset by a P460 million reduction due to peso appreciation against the dollar. Compared to last year, domestic debt has surged by 12.3%.
Foreign obligations, meanwhile, totaled P4.96 trillion, a 4.2% increase from the previous month and a 9.3% rise from September 2023. This included $2.5 billion from a recent global bond issuance aimed at supporting budgetary requirements, with yields across three tranches.
Favorable currency adjustments trimmed the external debt by P2.43 billion, while government-guaranteed obligations rose by 2.4% to P372.86 billion, reflecting new guarantees for sectors such as energy and food security.
