The Philippines’ total outstanding debt reached ₱18.16 trillion by the end of February 2026, rising by ₱25.74 billion or 0.14 percent from the previous month. But what does this mean for the economy and for ordinary Filipinos? Read on for the full breakdown.
Debt Growth Over the Year
Compared to February 2025, the country’s debt is ₱1.53 trillion or 9.2 percent higher than the ₱16.63 trillion recorded a year ago. According to the Bureau of the Treasury, this shows a “stable and well-managed debt position” despite ongoing fluctuations in global financial markets.
Majority of Debt is Domestic
The government continues to prioritize domestic financing to protect the national debt from foreign market volatility. At present, 68.7 percent of the total debt comes from local sources. Domestic debt rose by ₱154.39 billion or 1.25 percent, reaching ₱12.48 trillion, driven by the issuance of ₱158.14 billion in new government securities to fund national development projects.
External Debt Declines
On the other hand, external debt fell to ₱5.68 trillion, a 2.21 percent drop or ₱128.65 billion, largely due to favorable currency movements that reduced the peso value of U.S. dollar and other foreign currency obligations by ₱136.43 billion. Despite the decline, the Philippines maintained access to international markets. By the end of February, total external financing reached ₱203.10 billion, supported by a successful USD 2.75 billion triple-tranche global bond offering.
Guaranteed obligations also increased by 10.11 percent, totaling ₱379.98 billion, mainly due to new guarantees extended to the Power Sector Assets and Liabilities Management (PSALM) Corporation. This rise was partially offset by repayments and currency adjustments.
What This Means for Filipinos
While debt continues to grow, officials say it reflects planned investment in national projects and services that benefit the public. A careful balance between domestic and external financing helps ensure economic stability, even amid global uncertainties.
