The country’s external obligations surged nearly 5 percent in a single month, closing the first quarter at P5.95 trillion, as a sharp depreciation of the peso against the US dollar added P299.5 billion to the total valuation of foreign-denominated debt — dwarfing the P2.55 billion in net repayments the government managed during the period.
The Bureau of the Treasury reported Wednesday that total outstanding government debt reached a record P18.49 trillion at end-March, up P328.43 billion, or 1.8 percent, from the February level.
The peso’s slide — more than three pesos against the dollar during the month — was the dominant factor behind the increase, inflating the peso value of foreign loans even as debt servicing continued. Guaranteed obligations also crept higher, reaching P381.41 billion, an increase of nearly 11 percent against the end-of-2024 baseline, as global currency volatility continued to complicate the government’s fiscal position.
On the domestic side, outstanding debt rose 0.44 percent to P12.53 trillion, driven by the government’s continued issuance of securities to finance the national budget. Currency revaluation added a further P8.68 billion to the value of foreign-currency instruments held in local markets.
The Treasury figures underscore how heavily exchange-rate movements are shaping the debt trajectory — with the peso’s performance against the dollar now functioning as a key variable in the government’s borrowing costs, independent of its actual financing decisions.
