Gov’t debt eases to P17.47T in August on bond repayment, stronger peso

The national government’s debt stock slightly eased to ₱17.47 trillion as of end-August 2025, down 0.5 percent from ₱17.56 trillion in July, the Bureau of the Treasury (BTr) reported Tuesday.

The decline was attributed mainly to the government’s full repayment of its largest local bond for the year, worth ₱516.34 billion, as well as the peso’s appreciation, which lowered the value of foreign obligations.

Domestic debt fell by ₱21.39 billion to ₱12.09 trillion, while external debt dropped by ₱73.68 billion to ₱5.38 trillion. The stronger peso also trimmed the value of government-guaranteed external loans, bringing guaranteed debt down by ₱6.51 billion to ₱346.46 billion.

The BTr noted that the debt profile improved, with the share of domestic borrowings rising to 69.2 percent from 68.9 percent in July.

“This indicates a generally more favorable debt position, given that domestic debt is less vulnerable to shifts in foreign exchange movements. In addition, domestic borrowing is largely owed to Filipinos themselves, providing a safe and secure investment vehicle while keeping funds circulating in the local economy,” the BTr said.

From January to August, the government raised ₱1.84 trillion in gross domestic financing, including proceeds from Retail Treasury Bond Tranche 31.

The BTr said this demonstrates strong investor confidence in government securities as “an inclusive and high-quality investment option for Filipinos.”

The Treasury reaffirmed its commitment to prudent debt management and responsible borrowing, ensuring that financing activities remain consistent with the country’s high and inclusive growth agenda while safeguarding the welfare of future generations.