Manila: Strong demand for government securities issued in the Philippines resulted in a 0.99 percent rise in the national government's total outstanding debt as of May to PHP16.92 trillion.

According to Philippines News Agency, data released by the Bureau of the Treasury (BTr) showed that the bulk, or 69.6 percent, of the outstanding debt consists of domestic borrowings, with the remaining 30.4 percent attributed to foreign borrowings. Total domestic debt as of May reached PHP11.78 trillion, increasing by PHP189.96 billion from the previous month.

Government debt papers issued in May amounted to PHP190.87 billion, but the BTr reported this was counterbalanced by a PHP0.91 billion downward valuation due to the peso strengthening against the US dollar. Conversely, total foreign debt during the same period decreased by PHP23.76 billion to PHP5.14 trillion. This decline was linked to the net payment of foreign debt totaling PHP3.55 billion and the impact of the stronger peso, which reduced the value of foreign liabilities.

The BTr noted that domestic debt remains higher compared to foreign obligations as the government prefers domestic fund sources to manage foreign exchange risks and support the local capital market. The government remains committed to its prudent debt management strategy, ensuring borrowings are strategically aligned with fiscal objectives and overall macroeconomic stability.