The Philippine government's borrowing activities saw a significant spike in February, with gross borrowings jumping 40.9 percent to reach ₱478.8 billion compared to the same period last year, according to data released by the Bureau of the Treasury.
A dramatic shift occurred in the government's borrowing strategy, with domestic sources accounting for approximately 98 percent of February's financing needs. Domestic borrowings surged 232.5 percent to ₱468.2 billion, largely driven by a fresh ₱235 billion 10-year Treasury bond offering in late February.
"The modest uptick underscores the government's stable and well-managed debt position amid evolving global financial conditions," the Bureau of the Treasury stated in an earlier report.
This domestic borrowing surge more than offset a steep 94.7 percent decline in external financing, which dropped to just ₱10.5 billion in February. The government had frontloaded its global bond issuance in January, whereas February of the previous year had seen substantial external borrowing through multitranche dollar and euro global bonds.
For the first two months of 2026, total borrowings reached nearly ₱887 billion, representing a 60.4 percent increase from the same period last year. This borrowing activity pushed the government's outstanding debt to a new record of ₱18.16 trillion by the end of February.
The strategic shift toward domestic borrowing reflects the government's approach to minimize foreign exchange risks amid volatile global conditions. Treasury bill issuances also rose significantly to ₱55.3 billion during the month, compared to ₱10.8 billion a year earlier.
Despite the February surge, the government has trimmed its domestic borrowing program for the second quarter to ₱784 billion from ₱824 billion in the previous quarter. This adjustment follows elevated yields amid geopolitical tensions in the Middle East, which limited fundraising opportunities in March.
For the full year 2026, the government plans to borrow ₱2.68 trillion, maintaining a 77:23 domestic-to-foreign borrowing mix. Finance Secretary Frederick Go indicated that the government currently has no plans to expand its borrowing program further, citing ongoing geopolitical uncertainties.