Manila: The national government's total outstanding debt increased to PHP18.16 trillion by the end of February, as reported by the Bureau of the Treasury (BTr) on Wednesday. This rise is attributed to ongoing financing activities and changes in global market conditions.

According to Philippines News Agency, the BTr's news release indicated that the debt level was 0.14 percent, or PHP25.74 billion, higher than the amount recorded at the end of January. The BTr highlighted that this modest increase reflects a stable and well-managed debt position amid evolving global financial conditions.

Domestic borrowings continued to dominate the debt composition, comprising 68.7 percent or PHP12.48 trillion, while external obligations were recorded at PHP5.68 trillion. The BTr explained that this trend is driven by the prioritization of domestic financing to shield the government's debt from unfavorable external developments.

The domestic debt saw a rise of 1.25 percent, equivalent to PHP154.39 billion, primarily due to the government's fundraising through the issuance of treasury bills (T-bills) and treasury bonds (T-bonds). Meanwhile, the impact of currency movements on foreign currency-denominated domestic securities was minimal, reducing valuations by PHP3.75 billion.

Conversely, foreign debt experienced a decline of 2.21 percent, amounting to PHP128.65 billion, thanks to favorable exchange rate movements that decreased the peso value of obligations denominated in dollars and other foreign currencies. These valuation gains outweighed the net external loan availment of PHP7.78 billion.

Despite the reduction in external debt, the government continued to seek international financing, underscored by the successful issuance of USD2.75 billion in triple-tranche global bonds with maturities spanning 5.5, 10, and 25 years. The BTr noted that this issuance reflects sustained investor confidence in the country's credit profile and the national government's ability to access international markets under favorable terms.