National gov’t borrowing slumped 72% in August
The Philippine national government’s gross borrowings plunged by more than 70 percent in August as the absence of a large retail bond issuance during the month sharply cut domestic debt.
Latest data from the Bureau of the Treasury showed gross borrowings dropped 72 percent to P141.3 billion in August from P508.5 billion a year earlier.
The sharp year-on-year decline largely reflected the timing of debt issuances, with August 2025 seeing a hefty P425.6-billion retail Treasury bond (RTB) sale.
This year, the government had yet to issue RTBs, with its next offering set for public subscription from Sept. 29 to Oct. 7.
Domestic borrowings in August plunged 74 percent to P127.93 billion from P498.21 billion a year earlier. Treasury bills accounted for P2.77 billion, while longer-dated Treasury bonds made up the bulk at P125.16 billion.
Meanwhile, borrowings from foreign lenders climbed 29 percent to P13.34 billion from P10.31 billion. Both amounts consisted entirely of project loans.
Despite the steep monthly drop, cumulative borrowings remained broadly unchanged from a year earlier as the timing of major debt issuances shifted between months.
From January to August, gross borrowings stood at P2.25 trillion, just 0.5 percent below the P2.27 trillion recorded in the same period in 2025.
With four months left, cumulative borrowings now account for 82 percent of the government’s P2.733-trillion revised gross borrowing program for 2026.
