Manila: The Philippines’ debt increased to 16.63 trillion pesos, approximately 290.3 billion U.S. dollars, as of February 2025, marking a 1.96 percent rise compared to January, the Philippines’ Bureau of Treasury announced on Tuesday. This escalation was primarily attributed to the net issuance of new domestic and external debt aimed at supporting public programs and projects.

According to Lao News Agency, the debt increase was somewhat mitigated by the strengthening of the peso against the U.S. dollar. The peso appreciated from 58.375 pesos at the end of January to 57.990 pesos at the end of February, which helped in managing foreign debt obligations.

The Bureau of Treasury reported that domestic debt constituted 67.5 percent of the total debt stock, while external obligations made up the remaining 32.5 percent. The country’s external debt reached 5.41 trillion pesos in February, which is a 3.44 percent increase from January.

The bureau indicated that the rise in external debt was due to the net availment of foreign borrowing amounting to 193.71 billion pesos and a net appreciation effect of 20.41 billion pesos on third-currency-denominated debt. However, these increases were partially counteracted by a 34.48 billion pesos reduction resulting from the peso’s appreciation against the U.S. dollar. (1 peso equals 0.017 U.S. dollars)