The National Government’s (NG) outstanding debt stood at P18.55. trillion as of end-May, which represents an increase of 0.41 percent or P76.11 billion from the previous month’s level of P18.47 trillion. The increase was primarily driven by the net incurrence of domestic securities as the government continued to raise funds to support financing needs, despite the ongoing Middle Eastern conflict.

Meanwhile, the appreciation1 of the peso against the US dollar and other foreign currencies helped temper the increase. The composition of the total debt stock remains predominantly domestic at 67.37 percent while external obligations account for the remaining 32.63 percent.

This reflects the government’s prudent debt management strategy of prioritizing domestic financing to support local capital markets, while reducing exposure to foreign exchange risks. Domestic debt rose to P12.50 trillion, an increase of 0.65 percent or P80.12 billion from end-April.

This is mainly due to P80.23 billion net issuance of government securities, while the peso appreciation trimmed P0.11 billion from onshore dollar bonds valuation. From the end-December 2025 level of P12.12 billion, domestic debt increased by 3.13% or P379.26 billion, consistent with the NG’s domestically skewed financing program.

On the other hand, external debt slightly declined to P6.05 trillion, lower by 0.07 percent or P4.01 billion from last month. This is due to the significant peso appreciation against the US dollar and other foreign currencies.

The favorable downward valuation effect of P18.91 billion outweighed the P14.90 billion in net external debt availment.

Nevertheless, the end-May external debt level still represents an 8.22 percent or P459.54 billion climb from the end-December 2025 level of P5.59 trillion.

NG guaranteed obligations stood at P443.50 billion as of end-May, higher by 15.73 percent or P60.28 billion from the previous month, behind the P61.62 billion issuance of new domestic guarantees.

This was partially offset by favorable revaluation effects on external guarantees, amounting to P0.06 billion for local currency-denominated guarantees and P0.75 billion for third currency-denominated guarantees, as well as by repayments of external guarantees totaling P0.53 billion.

Compared with the end-December 2025 level, NG guaranteed obligations increased by 28.71 percent or P98.93 billion. Bureau of Treasury