Manila:<Text>

The Philippine government's total liabilities surged to PHP18.13 trillion by the end of January 2026, marking a 2.14 percent increase from the end of 2025, as reported by the Bureau of the Treasury (BTr) on Wednesday.

According to Philippines News Agency, domestic debt comprises 68 percent of the total liabilities, while foreign currency-denominated loans account for the remaining 32 percent. The BTr highlighted that the uptick in debt reflects the government's approach of advancing domestic and external issuances to secure favorable financing terms ahead of potential global market uncertainties that could elevate interest costs.

The BTr emphasized that with domestic debt making up the majority of the total debt stock, the exposure to foreign exchange risks remains limited. Total domestic debt climbed to PHP12.32 trillion, showing a 1.72 percent rise from the previous month. The bureau attributed the PHP208.05-billion increase in domestic financ ing to the government's focus on prioritizing domestic funding sources, which offers Filipinos a secure investment option while advancing national development.

The BTr noted that this strategy also minimizes the national government's debt portfolio exposure to exchange rate fluctuations, resulting in a marginal valuation impact on domestic securities denominated in foreign currencies, rising by only PHP0.47 billion.

Foreign currency-denominated loans grew to PHP5.81 trillion, increasing by 3.2 percent or PHP217.63 billion from the previous month. The BTr pointed to the issuance of new global bonds and net availments of official development assistance from international development partners, contributing PHP191.02 billion to the rise in external obligations.

On January 21, the government executed the largest fixed-rate global bond issuance in over three years, selling USD2.75 billion in global bonds with tenors of 5.5, 10, and 25 years to international inve stors. The increase in foreign debt was also influenced by the depreciation of the peso against the U.S. dollar, adding approximately PHP26.61 billion.

Despite the increase in foreign debt, the BTr described the recent external borrowings as a strategic and timely move to leverage a brief period of favorable international credit conditions. The bureau emphasized that the successful issuance of the triple-tranche global bonds underscored sustained investor confidence in the Philippines' creditworthiness and long-term growth prospects.