The issuance of government securities, coupled with a weakening of the Philippine peso, led to a 0.61 percent increase in the country’s outstanding government liabilities in October 2025 compared to the previous month.
Data released by the Bureau of the Treasury (BTr) on Tuesday revealed that the government’s outstanding debt totaled P17.56 trillion as of the end of October, marking an increase of P106.78 billion from the P17.46 trillion recorded at the end of September 2025.
“The expansion in government debt was driven by net issuances of both domestic and external liabilities, alongside the revaluation impact of a weaker peso against the US dollar,” the BTr stated in a press release.
Of the total debt, domestic liabilities accounted for 68.6 percent, in line with the Bureau of the Treasury’s debt management strategy, which prioritizes local currency financing to reduce foreign exchange risks and support the development of the domestic bond market.
Domestic liabilities rose by P72.43 billion, reaching P12.05 trillion by the end of October. This increase was mainly due to P70.65 billion in net issuances of government securities and the depreciation of the peso, which added P1.78 billion to the local currency valuation of retail dollar bonds (RDBs).
Meanwhile, the country’s foreign debt climbed by P34.35 billion to P5.52 trillion due to net loan availments of P8.25 billion and a P26.10 billion upward adjustment in the peso equivalent of foreign currency-denominated debt.
The weaker peso against the US dollar added P58.64 billion to the total foreign debt, while a peso appreciation against other currencies offset this increase by P32.54 billion, the BTr noted.
In terms of government guarantees, national government liabilities decreased by P2.22 billion to P344.41 billion, primarily due to net repayments of P1.25 billion and a lower valuation of foreign currency guarantees, which dropped by P970 million. This reduction is attributed to a higher proportion of external guarantees being denominated in third currencies rather than US dollars.
DOF PHOTO