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N.G. DEBT UP 10.2% TO ₧16.92T AS OF END-MAY www.businessmirror.com.ph
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Friday, July 4, 2025 Vol. 20 No. 264
P25.00 nationwide | 2 sections 24 pages | 7 DAYS A WEEK
By Cai U. Ordinario @caiordinario
HE Marcos administration’s total outstanding debt posted a double-digit growth in May 2025 on the back of higher domestic borrowings, according to the Bureau of the Treasury (BTr). N.G. DEBT NEARS P17T AS BORROWINGS RISE IN MAY
Driven by Domestic Borrowings, Tempered by Stronger Peso TOTAL OUTSTANDING DEBT
DEBT COMPOSITION
₧16.92T
Total debt (as of end-May 2025)
+P166.2B or +0.99% MoM (vs April 2025)
Domestic Debt: P11.78T (69.6%) External Debt: P5.14T (30.4%)
❝[The] increase was primarily driven by the successful net issuances of new domestic securities, which reflect sustained investor confidence in the Philippine economy.❞ — Bureau of the Treasury
❝This reflects the government’s strong bias for domestically sourced financing, which helps mitigate foreignexchange risks and strengthen the local capital market.❞ — Bureau of the Treasury
The data showed the National Government’s (NG) total outstanding debt reached P16.92 trillion as of end-May 2025.
❝The government remains committed to its prudent debt management strategy, ensuring borrowings are strategically aligned with fiscal objectives and overall macroeconomic stability.❞ — Bureau of the Treasury
This marked a 10.24-percent or P1.57-trillion increase from the P15.35 trillion posted in the same See “N.G.,” A2
BSP EYES LIMITS ON ACCESS TO ONLINE GAMING AMONG BANKS
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HE Bangko Sentral ng Pilipinas (BSP) may place limits on the access to online gambling among banks and electronic money issuers to protect consumers. These limits will be elaborated in a soon-to-be released BSP circular to protect users of digital platforms from risks associated with online gambling. The BSP said it has already circulated a draft of the document and is currently reviewing feedback from stakeholders. “The circular would seek to require BSP-supervised institutions [BSIs], primarily banks and electronic money issuers, to better protect users of their digital platforms from these risks. Protection may come in the form of various limits to gaming access,” the BSP said in
a statement. This latest initiative builds on the BSP’s earlier actions, including its 2021 directive prohibiting regulated entities from dealing with unlicensed gambling operators. The initiative also enhances BSP’s 2022 order for e-wallets and other BSIs to remove links to electronic sabong (e-sabong) from their platforms following the suspension by the national government of all e-sabong operations. “The BSP is taking a collaborative approach to crafting the circular, to ensure that the final policy strikes a balance between protecting consumers and preserving access to digital payments for licensed businesses,” the statement read. See “BSP eyes,” A2
BM Graphics: Ed Davad | Source: Bureau of the Treasury
+P1.57T or +10.24% YoY (vs P15.35T in May 2024)
CLOUDY WITH A CHANCE OF RELIEF Dark clouds loom over Bonifacio Global City and the Laguna de Bay area on Wednesday, as the Low Pressure Area (LPA) and the Southwest Monsoon
(Habagat) bring unsettled weather across parts of Luzon, according to PAGASA. The Philippines—ranked as the world’s most disaster-prone country in 2023—is among climate-vulnerable nations that could benefit from proposed debt relief measures aimed at freeing up resources for climate adaptation and disaster preparedness. NONIE REYES
BSP: 2 more rate cuts possible to spur growth
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HE Monetary Board may be open to deal in two more rate cuts to spur economic growth this year, the Bangko Sentral ng Pilipinas (BSP) said Thursday. The Development Budget Coordination Committee (DBCC) reduced the country’s growth targets to 5.5 percent to 6.5 percent this year. Inflation was estimated to average 2 percent to 3 percent in 2025. BSP Governor Eli M. Remolona Jr. said the Monetary Board has three more meetings this year and instead of just one more rate cut, there could be two. This could bring the total reduction in interest rates to 75 basis points. “There’s room because inflation is low and growth is a bit lower also, except that, the cuts cannot really compensate entirely for the slowdown in growth,” Remolona told reporters on the sidelines of the 32nd BSP Anniversary Multimedia
Exhibit Opening and The Governors Speak Book Launch on Thursday. Remolona said the global uncertainties have affected consumption, particularly for big-ticket items as well as postponed investments. To help boost growth, a reduction in rates may be warranted. “We still have August. We still have October, December. The slowdown in growth, it’s because of the uncertainty,” Remolona said. Remolona, however, said the approval of a P50 wage hike in Metro Manila may have a slight impact on the BSP’s inflation forecasts. The wage hike in Metro Manila, the Department of Labor and Employment (DOLE) had said, raised the daily minimum wage to P695 from the current P645 per day. In the previous Monetary Board meeting, the BSP’s inflation forecast was adjusted to 1.6 percent in See “BSP,” A2
FAST-TRACKING FOR ASEAN Megaworld President and CEO Lourdes Gutierrez-Alfonso (second from left) leads the site inspection of the Mactan Expo at The Mactan Newtown township in Lapu-Lapu City, Cebu. The 1.5-B Mactan Expo is a two-level standalone convention center that can accomodate up to 2,500 people and has direct access to the beach. It has been reported to be the venue of the upcoming ASEAN Summit and the ASEAN Tourism Forum in 2006.
PESO EXCHANGE RATES n US 56.3410 n JAPAN 0.3922 n UK 76.9393 n HK 7.1774 n CHINA 7.8664 n SINGAPORE 44.2689 n AUSTRALIA 37.0893 n EU 66.4711 n KOREA 0.0416 n SAUDI ARABIA 15.0239 Source: BSP (July 3, 2025)