MANILA, Philippines — The national government’s outstanding debt reached a new historic peak of ₱18.13 trillion as of the end of January 2026, as the Bureau of the Treasury (BTr) “front-loaded” its borrowing activities to avoid rising global interest costs.
- Total Debt: ₱18.13 trillion (up 2.41% from December 2025 and 11.15% higher year-on-year).
- Per Capita Debt: Based on the current population of 112.7 million, every Filipino effectively owes approximately ₱160,800.
- Domestic vs. Foreign:
- Domestic Debt: ₱12.32 trillion (68% of total). The government continues to prioritize local borrowing to reduce exposure to fluctuating foreign exchange rates.
- External Debt: ₱5.81 trillion (32% of total). This includes a $2.75 billion triple-tranche bond issuance in late January and ₱191 billion in new development assistance.
The BTr described the spike as a “strategic and timely” move to capitalize on a narrow window of favorable international credit conditions. By borrowing now, the government aims to lock in lower rates before global market uncertainties—likely linked to the ongoing Middle East conflict—drive interest costs higher.
Financial expert Jonathan Ravelas noted that while the number is high, the debt remains “manageable” as long as the Philippine economy continues to grow. The real risk, he warned, is not the debt itself but the potential for slower economic growth or a sharp increase in interest rates.
The current debt level remains within the Marcos administration’s full-year 2026 borrowing target of ₱19.06 trillion. S&P Global Ratings projects that the Philippines will be the third-largest borrower in Southeast Asia this year as it seeks to fund a ₱1.65 trillion budget deficit, largely driven by infrastructure spending.
