The government’s total debt climbed to a fresh high of ₱18.13 trillion at the start of the year as the Marcos administration frontloaded its borrowing program to lock in lower interest rates before global market conditions tighten.

According to data released by the Bureau of the Treasury on Wednesday, March 4, the total outstanding obligations increased by P426.15 billion, or 2.4 percent, in January from the previous month.

The treasury said the record figure was a strategic maneuver, noting that the surge in issuance was designed to secure concessional financing ahead of anticipated volatility in international credit markets.

Domestic debt, which represents 68 percent of the country's total obligations, rose 1.7 percent to ₱12.32 trillion. The ₱208.52 billion month-on-month increase in local debt was driven almost entirely by the net issuance of government securities.

The Marcos administration has maintained a long-standing policy of prioritizing domestic funding to insulate the sovereign balance sheet from currency swings and to deepen the local capital market. The impact of foreign exchange fluctuations on the domestic portfolio remained negligible at ₱470 million for the month.

Meanwhile, external debt grew at a faster clip, jumping 3.9 percent to ₱5.81 trillion as of the end of January. The ₱217.63 billion rise in foreign obligations was primarily fueled by a successful triple-tranche Global Bond offering and the disbursement of new official development assistance from multilateral partners.

While new borrowing was the main driver, a softening peso further bloated the debt stock. The Philippine currency weakened to ₱58.954 against the United States (US) dollar at the end of January from ₱58.790 in December, a depreciation that added ₱26.61 billion to the total through upward revaluation of foreign-denominated loans.

Treasury said the heavy external borrowing in January was a tactical decision to exploit a narrow window of favorable global sentiment. The strong reception to the recent bond offerings suggests that international investors remain constructive on the Philippines’ long-term economic trajectory and fiscal discipline.

Government-guaranteed obligations also edged up 0.15 percent to ₱345.08 billion, a change the Treasury attributed largely to currency adjustments on foreign-denominated guarantees.

As the government navigates a higher-for-longer interest rate environment, the treasury said the focus remains on maintaining a sustainable debt-to-gross domestic product (GDP) ratio while funding infrastructure and social programs.