Net external liabilities widen to $65.6 billion in Q2
The Philippines’ net external liability position widened in the second quarter as increased foreign borrowing by banks, businesses and the government outpaced the country’s holdings of financial assets abroad, data from the Bangko Sentral ng Pilipinas (BSP) showed.
In the second quarter, the Philippines' net external liability position expanded to $65.6 billion, according to data released by the Bangko Sentral ng Pilipinas (BSP). This marked an increase from $63.9 billion at the end of June 2025 and represented 13.4% of the country's GDP. The widening gap was primarily driven by higher debt liabilities and lower reserve assets, with net loan liabilities expanding to $78.3 billion, up from $71.3 billion three months prior.
The government's issuance of global bonds also contributed to the increase in net liabilities in debt securities. While the BSP remained the largest net external lender, banks transitioned into a net borrower position, owing $1.4 billion, compared to a net lender position of $3.7 billion in the previous quarter.
Written by urgent.news from Philippine Star Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
