PH foreign debt rose 5.1% to $154.93b in Q2

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The Philippines’ outstanding foreign debt rose 5.14 percent to $154.93 billion in the second quarter of 2026 from $147.35 billion in the first quarter, the Bangko Sentral ng Pilipinas said Friday

The BSP attributed the quarter-on-quarter increase to net borrowing by the national government and private domestic banks.

“This was partly offset by negative [foreign exchange] revaluation effects arising from the US dollar appreciation and a modest decline in non-resident holdings of Philippine debt securities,” the BSP said.

The debt level also exceeded the $148.87 billion recorded in June 2025, led by the government’s global bond issuances and loan availments for budgetary and development financing.

External debt as a share of gross domestic product rose to 31.6 percent from 30.0 percent in the first quarter.

Data showed that short-term external debt based on remaining maturity climbed to $31.64 billion at the end of June but remained adequately covered by the country’s gross international reserves of $104.74 billion.

“This placed the GIR-to-STRM ratio at 3.31, indicating sufficient resources to cover external debt obligations falling due over the next 12 months,” the BSP said.

The debt service ratio eased slightly to 9.0 percent from 9.2 percent a year earlier. The BSP said this showed foreign exchange earnings remained adequate to meet external debt repayments.

“Overall, the external debt position remained broadly manageable, underpinned by sound solvency indicators and adequate liquidity buffers,” the BSP said. — Thony Rose Lesaca