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Manila Bulletin devider Business devider Banking & Finance devider Banks' return to net assets trims Philippines' net foreign liability in Q3 2025

Banks' return to net assets trims Philippines' net foreign liability in Q3 2025

Published Dec 30, 2025 09:35 am  |  Updated Dec 30, 2025 02:30 pm

At A Glance

  • Despite the general government's higher net liabilities, the country's international investment position (IIP)—a snapshot of the value of foreign financial assets and liabilities—posted a lower net foreign liability as of end-September on the back of banks' reversal to net assets and other sectors' easing net liability.
Despite the general government’s (GG) higher net liabilities, the country’s international investment position (IIP)—a snapshot of the value of foreign financial assets and liabilities—posted a lower net foreign liability as of end-September, supported by banks’ reversal to net assets and other sectors’ easing net liability.
The latest data from the Bangko Sentral ng Pilipinas (BSP) released on Monday night, Dec. 29, showed that the Philippines held a lower net external liability of $58.22 billion as of end-September 2025, down from $62.68 billion in the same period last year.
This translates to a 7.1-percent drop from end-September 2024 and a 13.2-percent decline from the previous quarter. Such a development implies that the country had higher foreign assets and lower foreign debt, signaling an improved balance with the rest of the world.
Broken down, banks’ net liability of $5 billion in the first nine months of 2024 swung to $1.83 billion in net assets as of end-September. While still a net borrower, other sectors posted a lower liability of $79.77 billion, down from $91.43 billion last year.
Meanwhile, the GG’s obligations increased by 12.2 percent to $89.95 billion from $80.14 billion last year. The BSP also held assets worth $109.66 billion during the period, 3.7-percent lower than the $113.88 billion it held in the previous year.
According to the BSP, the size of the country’s net liability represents 12.1 percent of gross domestic product (GDP), down from 14.1 percent in the quarter ending in June. This ratio indicates that the country’s foreign debt position has become lighter relative to the size of the economy.
As of end-September, the country’s investments abroad increased by 3.3 percent to $263.86 billion from $255.53 billion in the same period last year and rose 1.9 percent from the previous quarter’s $258.95 billion.
Similarly, foreign investments in Philippine assets increased by 1.2 percent to $322.08 billion from $318.21 billion a year earlier, though they eased by 1.2 percent from the previous quarter’s $326 billion.
IIP is an indicator of the country’s financial relations with the rest of the world, which largely informs the central bank’s assessment of the country’s vulnerability and resilience, showing what the country owns and owes to foreign countries and entities.
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