The Philippines has set a new record for external debt, reaching $154.932 billion in the second quarter of 2026, according to the Bangko Sentral ng Pilipinas (BSP). This marks a 5.14% increase from the previous quarter.
Government and Private Sector Drive Debt Growth
Outstanding external debt increased to $154.93 billion at end-June 2026 from $147.35 billion a quarter earlier but remained broadly manageable based on key indicators.
Bangko Sentral ng Pilipinas
- National Government debt rose to $92.848 billion.
- Private sector external debt increased by 9.09% to $56.397 billion.
The BSP attributed the surge in external debt to new borrowings by the National Government and private banks. This increase comes amidst ongoing economic recovery efforts.
In comparison to last year, the debt stock has grown by 4.07%, primarily due to global bond issuances and loans taken to cover budget deficits.
Public sector obligations dominate the external debt landscape, now accounting for about 63.7% of the total. State-owned banks and the BSP contributed significantly to this figure.
Debt sourced from Japan remains the largest share at $16.553 billion, followed by the UK ($7.436 billion) and China ($4.578 billion).
Despite the rising debt levels, the BSP reassured that liquidity buffers are robust, with gross international reserves covering about 3.7 times the short-term external debt.
The current debt service ratio has improved slightly to 9% from 9.2% last year, indicating a stable capacity to meet obligations.
Overall, while the external debt is at an all-time high, the BSP maintains that the situation remains manageable, benefiting from strong solvency indicators.