MANILA — The Philippines’ outstanding external debt eased slightly to USD147.35 billion in the first quarter of 2026 from USD147.65 billion in the previous quarter, according to the Bangko Sentral ng Pilipinas (BSP).

In a statement, the BSP said the quarter-on-quarter decline was mainly due to lower non-resident holdings of Philippine debt securities.

“The slight quarter-on-quarter decline in external debt was driven by lower non-resident holdings of Philippine debt securities, reflecting more cautious investor sentiment and tighter financing conditions for emerging markets during the quarter,”

The central bank said the country’s debt indicators remained stable and manageable.

External debt as a share of gross domestic product (GDP) improved marginally to 30 percent from 30.3 percent in the previous quarter, despite slower economic growth.

Liquidity conditions also strengthened during the period. The BSP said short-term external debt based on the remaining maturity concept fell to USD25.50 billion, while gross international reserves stood at USD106.64 billion.

“This is equivalent to 4.18 times STRM, indicating a strong capacity to meet near-term external commitments and a robust reserve adequacy position relative to emerging economy peers,”

The debt service ratio remained moderate at 9.5 percent, although this was higher than the 8.5 percent recorded a year earlier due to increased principal repayments.

On a year-on-year basis, external debt rose slightly from USD146.74 billion at end-March 2025. The BSP attributed the increase to new borrowings by the national government and private sector, which continued to finance development projects, trade, and business activities.

“Overall, the external debt profile remains resilient, with developments primarily reflecting market-driven adjustments and financing requirements,”