By the staff
The Philippines cut its foreign debt payments sharply in the first 10 months of 2025 as fewer obligations matured and the government restrained overseas borrowing, according to data from the Bangko Sentral ng Pilipinas (BSP).
External debt service fell nearly 23% to $11.02 billion in the January–October period.
Principal repayments dropped 41% to $4.51 billion, while interest payments eased 2.1% to $6.51 billion.
The central bank said the payments remained manageable relative to foreign earnings. External debt service accounted for 20.7% of export receipts and 8.4% of exports of goods, services and primary income during the period.
Debt service includes principal and interest payments on foreign obligations, covering amortisation on medium- and long-term loans and interest on short-term credit lines.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said the decline reflected fewer foreign debt maturities and a deliberate effort to limit currency risks by cutting reliance on offshore borrowing.
“Going forward, risk of forex losses would still lead to a tempered approach in increasing foreign borrowings to finance the country’s budget deficit,” Ricafort said.
Outstanding external debt, however, rose to a record $149.09 billion as of end-September, slightly above $148.87 billion in the previous quarter.
The BSP said the debt level remains sustainable, with external debt at 30.9% of gross domestic product, down from 31.2% in the prior quarter.
