The Philippines’ outstanding external debt rose 5.1 percent quarter-on-quarter to $154.93 billion in the second quarter from $147.35 billion in the first three months of the year, according to the Bangko Sentral ng Pilipinas (BSP).

External debt as a share of gross domestic product also increased to 31.6 percent from 30 percent in the previous quarter as external borrowings grew faster than economic output. Despite the increase, the BSP said the country’s external debt remained “broadly manageable” based on key debt and liquidity indicators.

External debt refers to debt liabilities of Philippine residents to nonresidents, regardless of whether the borrower is the government, a bank or a private company.

Short-term external debt based on remaining maturity rose to $31.64 billion. However, the country’s gross international reserves of $104.74 billion provided adequate coverage, resulting in a gross international reserves-to-short-term debt ratio of 3.31.

The BSP said the ratio indicated that the country had sufficient resources to cover external debt obligations falling due over the next 12 months. Reserve coverage also remained robust compared with other emerging economies.

The debt service ratio, which measures the country’s foreign exchange earnings against principal and interest payments on external debt, eased to 9 percent from 9.2 percent a year earlier. The decline indicated that the country’s foreign exchange earnings remained sufficient to meet external debt repayments.

The quarter-on-quarter increase in external debt was driven mainly by net borrowing by the National Government and private domestic banks. These were partly offset by negative foreign exchange revaluation effects resulting from the appreciation of the US dollar and a modest decline in nonresident holdings of Philippine debt securities.

Compared with June 2025, external debt increased from $148.87 billion. The year-on-year increase was primarily driven by the National Government’s global bond issuances and loan availments for budgetary and development financing.

By borrower, public-sector external debt rose to $98.54 billion from $95.66 billion at end-March, while private-sector external debt increased to $56.4 billion from $51.7 billion.

National Government and other public-sector nonbank borrowings accounted for $92.85 billion of total external debt. Private-sector debt included $24.45 billion in bank borrowings and $31.95 billion in nonbank obligations.

Medium and long-term debt accounted for $134.33 billion of the total, while short-term debt stood at $20.61 billion.

By creditor, bondholders and noteholders accounted for $49.23 billion, followed by banks and other financial institutions at $36.35 billion and multilateral agencies at $43.18 billion.

By currency, $113.1 billion of external debt was denominated in US dollars, $13.25 billion in Japanese yen and $3.84 billion in special drawing rights.

The BSP said the overall external debt position remained broadly manageable, supported by adequate liquidity buffers and sound solvency indicators.