At ₧18.55T, NG debt could lead to crisis–groups
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HE Freedom from Debt Coalition (FDC) warned that the ballooning national debt, which surged to a record P18.55 trillion as of end-May, could trigger another debt crisis. In a joint press conference ahead of President Ferdinand Marcos Jr.’s State on the Nation Address (Sona), the FDC and AIDS Healthcare Foundation (AHF) stressed that “debt payments far exceed the government’s budget allocation on health and social services.” Budget documents indicated that the government earmarked P2.599 trillion for social services under the 2026 General Appropriations Act (GAA). Key items in-
MONKEY BUSINESS? A viral Facebook post claimed an adult Philippine eagle was
rescued after being attacked by a troop of long-tailed macaques in Bukidnon, but wildlife experts say the bird’s condition points to a different—and more troubling—story. According to the Philippine Eagle Foundation (PEF), the eagle, now named Sawaga-Dalwangan, was found severely dehydrated with advanced maggot-infested wounds, damaged feathers, and signs she had been grounded for days. Veterinarians also found possible nylon burns on one foot, raising the likelihood that she had been caught in a snare rather than injured in a monkey attack. Story on page A11. PHOTOS COURTESY OF THE PHILIPPINE EAGLE FOUNDATION
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By Ada Pelonia
clude P1.295 trillion for education, P477.3 billion for local government units (LGUs), and P458.4 billion for health. Data from the Bureau of the Treasury (BTr) showed that the government spent a total of P1.149 trillion on debt service as of end-May, 63.5 percent higher than the P702.968 billion it paid in the same period last year. (See: https://businessmirror.com.ph/2026/07/06/maturing-covid-loans-weak-pesoswell-debt-service/) The increase was driven mainly by principal repayment on domestic debt, which surged by 269.92 percent year-on-year to P630.367 billion from P170.403 billion. In contrast, repayments on external debt fell by 44.13 percent to P97.847 billion
from P175.164 billion. FDC Secretary General Rovik Obanil said that while not inherently wrong, borrowing should serve only as one of the myriad of tools at the government’s disposal to strengthen the economy. Obanil, however, claimed that the government seems to use borrowing as a crutch to source funds, with Filipinos suffering the brunt “through taxes and poor healthcare and social services.” “Debt accountability is really important. There are policies that should be implemented to ensure that the borrowed money is used to improve the economy,” he told reporters on Tuesday. Meanwhile, Obanil also urged the government to repeal the auto-
matic appropriations law. “We’re also advocating for an independent debt audit. We have a lot of debt, but we can’t see what they are used for. It’s crucial that we get to monitor where the debt went, and if we benefited from it,” he said. Meanwhile, AHF Country Program Manager Ryan Guinaran underscored the need to reform the global government debt system, as developing countries are slapped with higher interest rates compared to developed nations. “Developing countries are really at a major disadvantage. The interest rates for these nations are about three to 10 times higher than when developed countries borrow funds,” Guinaran said. See “Debt,” A10
BusinessMirror A broader look at today’s business
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AMID NEW JITTERS, BANK ASSETS STILL EXPANDING www.businessmirror.com.ph
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Wednesday, July 15, 2026 Vol. 21 No. 274
P25.00 nationwide | 2 sections 22 pages | 7 DAYS A WEEK
By Andrea E. San Juan
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HE total assets held by the Philippine banking system continued to expand on the back of “healthy” growth in lending, sustained deposit inflows, and higher investment holdings. Ruben Carlo O. Asuncion, chief economist at the Union Bank of the Philippines (UBP) said this after data from the Bangko Sentral ng Pilipinas (BSP) showed that bank assets reached P30.44 trillion as of end-May 2026, up 11.68
percent compared to the P27.26 trillion as of end-May 2025. The total assets recorded as of endMay 2026 were also higher, by 1.06 percent, than the P30.12 trillion as of endApril 2026, central bank data showed. See “Bank assets,” A2
DIGITAL PAYMENTS HELP BSP ASSESS ECONOMIC ACTIVITY
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RINGING more people into the formal financial system by propelling the usage of digital payments will help the central bank have a “more timely” view of economic activity and better measurement of inflationary pressures, according to a deputy governor of the Bangko Sentral ng Pilipinas (BSP). In a message sent to the BusinessMirror, Mamerto E. Tangonan, BSP Deputy Governor for Payments and Currency Management Sector, explained that the benefits of embracing digital payments span across businesses, consumers, and even policymakers. For one, Tangonan explained to this newspaper that transitioning to electronic
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BusinessMirror environment reporter Jonathan L. Mayuga receives the Tinig ng Kalikasan Award, the 2026 Annual Million Trees Challenge (AMTC) Media Excellence Award for Environmental Journalism and Advocacy, during the Million Trees Foundation Inc. (MTFI) Recognition and Commitment Ceremony held at Estancia de Lorenzo, San Mateo, Rizal, on July 14. The award recognizes media practitioners who have advanced public awareness of environmental protection, watershed conservation, and sustainable development. BERNARD TESTA
payments would help the central bank in its monetary policy decisions. The BSP Deputy Governor overseeing the Payments and Currency Management Sector told this newspaper: “In as far as digital payments help obtain a more timely view of economic activity, better measurement of inflationary pressures, such as how much consumers spend and where they spend, and improve the quality of economic intelligence available for monetary policy.” Tangonan explained this further after he emphasized in a televised interview that the central bank aims to “bring in more people into the formal economy,” amid its push for greater usage of digital payments See “BSP,” A2
SMOKE ON THE WATER Three boys play in the shallow waters of the Strait of Hormuz as smoke billows from an explosion off Bandar Abbas, Iran, on Monday, July 13. The striking image captures the stark contrast between everyday life and a widening conflict after the United States launched fresh strikes on Iran and reinstated its blockade, prompting retaliatory attacks across the region. The renewed confrontation has placed one of the world’s most critical maritime chokepoints back in the global spotlight. Roughly one-fifth of the world’s seaborne oil and liquefied natural gas passes through the Strait of Hormuz, meaning prolonged instability could send fuel prices, shipping costs, and inflation higher—including in import-dependent economies such as the Philippines. Adding to market uncertainty, US President Donald Trump said Washington would seek to be “reimbursed” by 20 percent of the value of cargo transiting the strait to cover the cost of providing security. If implemented, the proposal could effectively add a new cost to global shipping, with potential ripple effects on businesses and consumers worldwide. RAZIEH POUDAT/ISNA VIA AP
MTerra solar farm ready to power PHL By Lenie Lectura
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TERRA Solar, touted as the world’s largest integrated solar photovoltaic (PV) and battery energy storage system (BESS), is now ready to fulfill its 600-megawatt (MW) mid-merit power supply agreement (PSA) with the Manila Electric Company (Meralco). This development came after Meralco PowerGen Corporation (MGen), together with its partners, inaugurated on Monday the P200billion power project. “What we inaugurate today will be the world’s largest integrated solar and battery storage facility located in a single site.
And it rises not in Texas, not in the Gobi Desert, but right here in Gapan, Nueva Ecija. This inauguration today was made possible not only by Meralco but by many other hands, other minds, and many hearts,” Meralco Chairman Manuel V. Pangilinan said. During the inauguration, President Ferdinand R. Marcos Jr. emphasized the country’s ability to execute renewable energy projects of significant scale. “The MTerra Solar project is proof that the Philippines is capable not only of envisioning, but also of delivering.” Marcos said the project is part of the government’s initiatives to raise the share of renewable energy (RE) in the country’s power genera-
tion mix to 40 percent by 2040. As of May, the Department of Energy (DOE) reported that RE accounts for 25.4 percent of the country’s total power generation. The President said DOE’s 10-Year Green Energy Auction Program, which seeks to deliver 25 gigawatts of new renewable capacity from 2027 to 2035, will help the government achieve the said goal. To support the growth in REs, he said, the country also expanded its energy storage systems to 845 megawatts as of May of this year from just 93 megawatts in July 2022. MTerra Solar Phase 1 has successfully energized 1,373 megawatts (MW) of solar PV capac-
ity and 825 MW of battery energy storage, equivalent to 3,300 megawatt hours (MWh), making it the largest operational integrated solar and battery facility on a single site globally. At present, its maximum export capacity to the Luzon grid remains at 750 MW pending completion of various works done in collaboration with the grid operator. “We expect start of grid compliance testing end of July. After that, we expect to get FCATC [final certificate of approval to connect] for phase 1 from NGCP,” said MGEN President Emmanuel Rubio. The project has also fully energized all 741 battery units, enabling it to See “MTerra,” A10
PESO EXCHANGE RATES n US 61.5960 n JAPAN 0.3793 n UK 82.2738 n HK 7.8582 n CHINA 9.0836 n SINGAPORE 47.6123 n AUSTRALIA 42.5998 n EU 70.1394 n KOREA 0.0411 n SAUDI ARABIA 16.4046 Source: BSP (July 14, 2026)