The Central Bank of the Philippines released external debt statistics showing the Philippines’ outstanding external debt increased in the second quarter of 2025 to USD 148.87 billion at end-June, up 1.5% from the previous quarter, mainly reflecting valuation effects from a weaker US dollar. External debt was equivalent to 31.2% of gross domestic product, slightly below the prior quarter’s 31.5%. The US dollar’s depreciation increased the US dollar-equivalent value of foreign-currency borrowings by USD 1.49 billion, with net acquisition of Philippine debt securities of USD 660.96 million also contributing, partly offset by net repayments of USD 315.67 million. Short-term external debt on a remaining maturity basis stood at USD 28.63 billion and was covered 3.7 times by gross international reserves of USD 106.00 billion; the reserves-to-short-term ratio was described as at par with emerging economy peers. The debt service ratio improved to 8.7% from 9.8% a year earlier due to lower principal and interest payments, while external debt rose 14.4% year on year, driven by borrowings including USD 5.83 billion in national government bond issuances and USD 3.44 billion in external financing tapped by local banks.
Central Bank of the Philippines 2025-09-12
Central Bank of the Philippines reports external debt rose to USD 148.87 billion at end-June 2025 mainly on US dollar valuation effects
The Central Bank of the Philippines reported an increase in external debt to USD 148.87 billion at the end of June 2025, up 1.5% from the previous quarter, mainly due to valuation effects from a weaker US dollar. The debt was 31.2% of GDP, slightly down from 31.5% in the prior quarter. The debt service ratio improved to 8.7% from 9.8% a year earlier, with external debt rising 14.4% year on year, driven by national government bond issuances and external financing by local banks.