The Philippine government’s outstanding debt reached a new historic high of ₱18.49 trillion as of the end of March, driven by aggressive local borrowing and a struggling national currency.
Data released by the Bureau of the Treasury on Wednesday revealed a 1.8% increase in total obligations, amounting to an additional ₱328.43 billion compared to the previous month.
The primary catalyst for this surge was the sharp depreciation of the Philippine peso against the US dollar, which heightened the cost of foreign-denominated liabilities.
Despite the government making active repayments, the currency’s decline of over three pesos against the greenback within the month effectively wiped out those gains.
Domestic debt grew by 0.44% to ₱12.53 trillion, as the state continues to issue government securities to finance the national budget. External debt, however, experienced a more significant spike, climbing nearly 5% to settle at ₱5.95 trillion. While the government recorded ₱2.55 billion in net repayments for foreign loans, the peso’s devaluation added a staggering ₱299.5 billion to the total valuation of these external debts.
Furthermore, the Treasury noted that guaranteed obligations rose to ₱381.41 billion. This marks an 11% increase from the end of 2025, highlighting the ongoing impact of global currency volatility on the country’s financial position.