Gov't debt hits record ₱18.16 trillion in February
Marcos admin says debt position remains 'well-managed'
By Derco Rosal
At A Glance
- While the national government's debt pile hit another historic high of ₱18.16 trillion as of end-February, the Marcos administration said this still underscores the government's well-managed debt position amid the global instability.
While the national government’s (NG) debt pile hit another historic high of ₱18.16 trillion as of end-February, the Marcos Jr. administration said this still underscores the government’s well-managed debt position amid global instability.
The latest data from the Bureau of the Treasury (BTr) showed the end-February level of the government’s outstanding debt only inched up ₱25.7 billion, or 0.14 percent, from the previous month’s close of ₱18.13 trillion.
This “modest uptick underscores the government’s stable and well-managed debt position amid evolving global financial conditions,” the BTr said in a statement on Wednesday, April 1.
Domestic debt, which represents 68.7 percent of the country’s total obligations, increased by 1.3 percent to ₱12.48 trillion. This means only less than one-third of the country’s debt pile was sourced externally.
According to the BTr, the continued prioritization of borrowing from domestic lenders aims to insulate the government’s debt position “from unfavorable external developments.”
Domestic debt was boosted by the issuance of ₱158.1 billion in government securities (GS), such as treasury bills (T-bills) and bonds (T-bonds) to raise funds for national development.
During this period, the Philippine peso strengthened against the United States (US) dollar, reducing the peso equivalent of foreign-denominated domestic bonds by ₱3.8 billion. This, however, had a “minimal” impact on the total domestic portfolio.
External debt declined by 2.21 percent, from ₱5.81 trillion in January to ₱5.68 trillion at the end of February.
This ₱128.7-billion contraction was “primarily driven by favorable foreign exchange (forex) rate movements, which decreased the peso value of US dollar- and third currency-denominated obligations by a combined ₱136.4 billion.”
Unlike the previous month, a strengthening peso helped lower the debt stock; the Philippine currency firmed to ₱57.639 against the US dollar at the end of February from ₱58.954 in January.
These valuation gains more than offset net external loan availment of ₱7.78 billion.
Despite the decline in the external debt stock, the government continued to tap international markets strategically, including a $2.75 billion triple-tranche global bond offering with tenors of up to 25 years.
This move reflects sustained investor confidence in the Philippines’ credit profile and its ability to secure financing on reasonable terms.
Government-guaranteed obligations rose significantly by 10.1 percent to ₱380 billion. The BTr attributed the increase to new guarantees extended to the Power Sector Assets and Liabilities Management (PSALM) Corp., which was only partially offset by net repayments and currency adjustments.
As the government manages its portfolio, the focus remains on maintaining a “prudent debt profile that minimizes vulnerability to forex fluctuations” while securing necessary funding.