Weak peso pushes Philippine national debt to P19.66 trillion

MANILA — The Philippines’ total national government debt reached P19.66 trillion at the end of September, driven by government borrowing and peso depreciation, official data showed.

The Bureau of Treasury said total outstanding liabilities rose by 0.27 percent, or P53.47 billion, from P19.61 trillion at end-August. 

Since the start of the year, the country’s debt expanded by 11.03 percent, or P1.95 trillion, from P17.71 trillion at the end of December 2025.

Domestic debt comprised the majority of the total debt stock at 67.39 percent, standing at P13.25 trillion. Local obligations grew by 0.07 percent month-on-month, primarily pushed by P7.66 billion in net government securities issuances and a P1.12 billion valuation increase in onshore dollar bonds. Domestic debt has risen 9.34 percent year-to-date.

External debt made up the remaining 32.61 percent, increasing 0.7 percent from August to reach P6.41 trillion. The Treasury attributed the increase in foreign liabilities to a P40.12 billion valuation uptick caused by local currency depreciation against the US dollar, alongside P9.27 billion in net loan availments.

The Philippine peso depreciated against the US dollar during the month, closing at P62.60 per dollar at the end of September compared to P62.209 at the end of August.

The foreign debt expansion was partially offset by a P4.7 billion valuation decrease resulting from favorable movements in third currencies against the dollar. External liabilities have climbed 14.67 percent since the end of 2025.

The Philippines has been borrowing heavily to finance its ambitious infrastructure push as well as social programs meant to cushion the impact of rising inflation on the most vulnerable sectors. However, a massive corruption scandal has also exposed how public funds have at times been diverted to enrich public officials.