Since President Ferdinand Marcos Jr. assumed office in July 2022, the country’s external debt has ballooned by nearly a third, rising by more than $36 billion as the government and private sector relied on foreign borrowings to finance infrastructure and other priority programs while maintaining debt indicators within internationally accepted thresholds.

Greenpeace estimated that P1.089 trillion was pilfered from the government coffers by erring officials since 2023, tagged at the controversial flood control projects.

Latest Bangko Sentral ng Pilipinas (BSP) data showed the country’s outstanding external debt stood at $147.35 billion as of end-March 2026, compared with $111.27 billion at end-2022, the first full reporting period after Marcos took office in July 2022.

That represents an increase of about $36.1 billion, or roughly 32 percent, over the period.

The increase has been driven largely by higher public-sector borrowings, with the national government accounting for the biggest share of the country’s foreign obligations.

General government external debt climbed from $59.81 billion at the end of 2022 to $89.27 billion by March 2026. Despite the higher debt stock, the BSP has consistently maintained that the country’s external debt profile remains sustainable, citing its predominantly medium- to long-term maturity structure, adequate international reserves, and manageable debt-servicing capacity.

As of March 2026, about $129.27 billion, or nearly 88 percent, of total external obligations consisted of medium — and long-term debt, reducing refinancing risks compared with short-term borrowings.

Public-sector obligations accounted for $95.66 billion, while the private sector owed $51.70 billion.

The country’s external debt has risen steadily throughout the Marcos administration — from $125.39 billion in 2023 to $137.63 billion in 2024 before reaching $147.65 billion at the end of 2025.

Foreign loans rising

It eased slightly to $147.35 billion in the first quarter of 2026 following valuation adjustments and changes in non-resident holdings of Philippine debt securities.

The debt buildup comes as the government continues to pursue large-scale infrastructure spending, economic recovery initiatives and other priority programs while maintaining access to both domestic and international financing markets.

During the ASEAN Summit in Cebu last May, Palace Press Officer Undersecretary Claire Castro said the country’s external debt started to balloon during the Duterte administration because of its ambitious “Build, Build, Build” program.

This was her reaction when asked to comment on a video statement of Vice President Sara Duterte at The Hague, Netherlands, criticizing the government’s failure to address unemployment and the country’s growing debt, alleging that the government is not focusing on governance but is choosing to respond to critics and political attacks.

When former President Rodrigo Duterte’s term ended in June 2022, the country’s outstanding national government debt was P12.79 trillion.

As of May 2026, the outstanding debt of the national government was at P18.55 trillion, showing a 0.41 percent or P76.11 billion increase from April’s record of P18.47 trillion.