MANILA, Feb. 3 (Xinhua) -- The Philippines' total outstanding debt stood at 17.71 trillion pesos (300 billion US dollars) as of the end of December 2025, up 10.32 percent from 16.05 trillion pesos (272 billion dollars) in 2024, the country's Bureau of the Treasury said on Tuesday.

An aerial photo shows the overhead view of Quezon City, the Philippines, on Oct. 31, 2023. (Photo by Rouelle Umali/Xinhua)

"The increase is due to the government's strategic net issuance of debt instruments to fund development programs, as well as the valuation effects of peso depreciation against the US dollar and third currencies," the bureau said in a statement.

Despite the higher debt level, the bureau said that the national government's debt portfolio remained resilient, with 68.4 percent of borrowings sourced domestically.

By prioritizing peso-denominated financing, which is predominantly held domestically, the bureau said the government reduces exposure to exchange rate volatility.

"It also keeps interest payments within the domestic economy and provides Filipinos with a stable and secure investment option," the bureau added.

Consequently, domestic debt rose to 12.12 trillion pesos (205 billion dollars) at the end of December 2025, the bureau said, adding that the country's external debt rose to 5.59 trillion pesos (94.6 billion dollars).