BTr: Government debt climbs to new high in June

The national government's outstanding debt climbed to a record P19.07 trillion as of end-June, up P518.98 billion, or 2.8 percent, from P18.55 trillion a month earlier, as the government tapped both domestic and external borrowings to finance its fiscal program.

The Bureau of the Treasury (BTr) said the increase was driven by the net issuance of domestic government securities and external loan availments, although the modest appreciation of the peso against the US dollar during the month partially tempered the rise in the debt stock.

The end-June level surpassed the previous record high of P18.55 trillion recorded in May.

Domestic debt, which accounted for 67.33 percent of total obligations, rose 2.74 percent to P12.84 trillion from P12.50 trillion in May. The increase reflected the net issuance of P342.93 billion in government securities, partly offset by a P600-million downward valuation adjustment on onshore dollar bonds due to the stronger peso. Compared with end-December 2025, domestic debt has increased by P721.59 billion, or 5.96 percent.

External debt climbed 2.92 percent to P6.23 trillion from P6.05 trillion at end-May, mainly due to P223.11 billion in net external loan availments. The peso's appreciation against the US dollar and other foreign currencies reduced the peso value of foreign currency-denominated obligations by P46.46 billion, limiting the increase. Since the end of last year, external debt has risen by P636.29 billion, or 11.38 percent.

The Treasury said the government continues to favor domestic borrowing to reduce exposure to foreign-exchange risk and maintain a more stable debt profile. External obligations accounted for the remaining 32.67 percent of the total debt stock.

Meanwhile, the BTr said national government guaranteed obligations fell sharply to P305.07 billion at end-June from P443.50 billion a month earlier, a decline of P138.43 billion, or 31.21 percent.

The drop reflected net repayments of P470 million in external guarantees and P136.71 billion in domestic guarantees, while favorable foreign exchange movements further reduced outstanding guarantees by P1.26 billion.

Compared with end-December 2025, outstanding government guarantees were down P39.50 billion, or 11.46 percent.