The Philippines’ outstanding debt eased slightly as of end-August 2025, following the government’s full repayment of its largest local bond for the year and the favorable impact of a stronger peso.
In its latest report, the Bureau of the Treasury (BTr) said the national government’s (NG) debt stock fell by 0.5 percent to P17.47 trillion in August from P17.56 trillion in July. The decline was driven mainly by the settlement of a P516.34-billion domestic bond and currency appreciation, which reduced the value of external obligations.
The debt profile also improved, with the share of domestic borrowings rising to 69.2 percent from 68.9 percent the previous month. “This indicates a more favorable position, as domestic debt is less exposed to foreign exchange risks,” the BTr said. It added that borrowing locally also channels funds back into the Philippine economy, benefiting Filipino investors.
Breaking down the figures, domestic debt slipped by P21.39 billion to P12.09 trillion, while external debt dropped by P73.68 billion to P5.38 trillion. Guaranteed obligations also declined by P6.51 billion to P346.46 billion, largely due to peso gains.
Year to date, the government has raised P1.84 trillion in gross domestic financing, including proceeds from the Retail Treasury Bond Tranche 31 (RTB-31), reflecting what the BTr described as “strong investor confidence in government securities as an inclusive and high-quality investment option.”
The bureau reaffirmed its commitment to prudent debt management and responsible borrowing, saying financing activities remain aligned with the country’s inclusive growth strategy while safeguarding fiscal sustainability for future generations.
