Philippines gross borrowings inch up to PHP 213B in Jan.

The National Government’s (NG) gross borrowings inched up in January amid a rise in domestic debt, the Bureau of the Treasury (BTr) said.

Data from the BTr showed that the total gross borrowings in the first month of 2025 rose by 4.92% to PHP 213.14 billion from PHP 203.15 billion a year prior.

Domestic debt accounted for the bulk or 71.41% of total gross borrowings for the month.

In January, gross domestic borrowings stood at PHP 152.2 billion, up 7.56% from PHP 141.51 billion in the same month in 2024.

This consisted of fixed-rate Treasury bonds amounting to PHP 140 billion and Treasury bills worth PHP 12.2 billion.

On the other hand, gross external debt slipped by 1.14% to PHP 60.94 billion in January from PHP 61.65 billion in the same month last year.

Broken down, program loans stood at PHP 56.29 billion and project loans were at PHP 4.65 billion.

“Primarily to finance the budget deficit, as some of the borrowings by the NG may also be front-loaded, just like the USD 3.29-billion global bond sale amid market volatility brought about by [Donald J.] Trump’s tariffs/protectionist policies,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

In January, the BTr said the Philippines raised USD 3.29 billion from the sale of the US dollar and euro-denominated bonds.

For 2025, the government set the financing program at PHP 2.545 trillion, where 80% will come from local lenders and 20% will be sourced from foreign sources.

Mr. Ricafort said future NG borrowings supported by fiscal reform measures could help to narrow the budget deficit, while rate cuts from the US Federal Reserve and the Bangko Sentral ng Pilipinas may ease interest payments. — Aubrey Rose A. Inosante