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Pacific Islands environment program says US must follow formal exit process

The US Capitol at sunset in Washington, DC, Dec 23, 2025. — REUTERS

SYDNEY — A decades-old Pacific organization for environmental protection said the United States must go through a formal process to withdraw its support, after President Donald Trump listed it among 66 entities the US would leave because they “operate contrary to US national interests”.

On Thursday, Washington said it would withdraw from dozens of international and UN entities, including the world’s key climate treaty and the Secretariat of the Pacific Regional Environment Program (SPREP).

Headquartered in Samoa, SPREP has supported dozens of low-lying island states to raise awareness at UN climate conferences about the threat to their survival from rising sea levels caused by climate change.

The organization employs more than 150 staff across Fiji, Solomon Islands, Vanuatu, and the Republic of the Marshall Islands, and runs program to reduce pollution, improve warning systems for severe weather and plan for disaster response to oil spills.

Sefanaia Nawadra, SPREP’s director-general, said the US contributed funding and technical expertise, but other partners were expected to help it continue its work.

“There is a formal process that the US will need to follow to withdraw its membership of SPREP. They are a valued member of SPREP until that formal withdrawal process is completed,” he said in a statement to Reuters.

“The impact of that will be determined as part of the details of the withdrawal process,” he added.

According to SPREP’s annual report, its annual budget comes primarily from five donor countries, Australia, Britain, New Zealand, France, and the US

China has also contributed $200,000 annually for several years.

A Pacific Islands government minister, who declined to be named because of the sensitivity of the issue, said the US move to withdraw from the organization would negatively impact US influence in the region, where China is expanding ties.

Several Pacific Island nations face new hurdles to enter the United States.

Fiji, Vanuatu, Tuvalu, and Tonga were listed on Wednesday among countries whose nationals must pay a costly visa bond to enter the US from January 21.

Tonga was listed in December as facing entry restrictions from January 1.

US Deputy Secretary of State Christopher Landau discussed migration in a call on Wednesday with Tonga Prime Minister Lord Fakafanua, he wrote on social media platform X.

The United States Embassy in Suva referred requests for comment to the State Department, which did not immediately respond to a request for comment. — Reuters

Australia to hold wide-ranging inquiry into antisemitism after Bondi attack

People gather at the floral tribute at Bondi Beach to honor the victims of a mass shooting targeting a Hanukkah celebration on Sunday at Bondi Beach in Sydney, Australia. — REUTERS

SYDNEY — Australia will hold a Royal Commission inquiry into the Bondi Beach mass shooting in which 15 were killed, the country’s most powerful public inquiry, Prime Minister Anthony Albanese said on Thursday.

The mass shooting at a Jewish Hanukkah celebration at Sydney’s famed Bondi Beach on December 14 shocked a country with strict gun laws and fueled calls for tougher controls and stronger action against antisemitism.

Police say the alleged father and son perpetrators were inspired by the Islamic State militant group.

Mr. Albanese said the Royal Commission, a government inquiry which can compel people to give evidence, will be led by retired judge Virginia Bell.

It will consider the events of the shooting as well as antisemitism and social cohesion in Australia, and is expected to report its findings by December this year.

“This Royal Commission is the right format, the right duration and the right terms of reference to deliver the right outcome for our national unity and our national security,” Mr. Albanese told a news conference on Thursday.

Mr. Albanese had initially resisted calls to set up a Royal Commission, saying the process would take years, which attracted criticism from Jewish groups and victims’ families who urged him to reconsider.

“I’ve taken the time to reflect, to meet with leaders in the Jewish community, and most importantly, I’ve met with many of the families of victims and survivors of that horrific attack,” Mr. Albanese said.

The government last month announced an independent review into law enforcement agencies that will assess whether authorities could have taken additional steps to prevent the attack.

That review, which will examine whether existing laws or information gaps stopped police and security agencies from acting against the alleged attackers, will now be folded into the Royal Commission, Mr. Albanese said. It is expected to report its findings in April. — Reuters

Crater glow seen on Mayon Volcano, Alert Level 3 still in effect

MAYON Volcano spews ash and lava as seen from Legaspi City, Albay on June 11, 2023. — PHILIPPINE STAR/EDD GUMBAN

A crater glow, locally known as “banaag,” was observed at the summit of Mayon Volcano on Wednesday evening, according to PHIVOLCS.

In an advisory, PHIVOLCS said that the crater glow was spotted between 6:36 PM and 7:00 PM last Wednesday. This occurred as “superheated volcanic gas from new magma lit up the atmosphere above the crater,” PHIVOLCS said.

State volcanologists also reported the presence of an incandescent lava dome at the crater, with newly laid material from rockfalls and short pyroclastic density currents (PDCs), or “uson,” has been shed from the dome into the Bonga Gully.

Alert Level 3 remains in effect over Mayon after it was first raised on Tuesday, Jan. 6.

PHIVOLCS continues to recommend that the public avoid entry into the volcano’s six-kilometer Permanent Danger Zone (PDZ).

Ma. Antonia “Mariton” V. Bornas, chief of the PHIVOLCS Volcano Monitoring and Eruption Prediction Division, said that PDCs from Mayon are extremely dangerous because they can affect areas within the six-kilometer radius.

PHIVOLCS defines PDCs as a mixture of fragmented particles, hot gases, and ash that rush down volcanic slopes or rapidly outward from a source vent at high speeds.

“This is new magma that contains a lot of volcanic gas and is semi-fluidal, almost like a liquid. When its sides collapse, it produces very hazardous pyroclastic density currents,” Ms. Bornas said in an interview in Filipino.

PDCs are considered life-threatening because their temperatures can reach 1,000 degrees Celsius, which can incinerate everything in their path.

Mayon Volcano has shown high levels of activity according to the PHIVOLCS 24-hour monitoring period from Tuesday to Wednesday.

The volcano recorded one volcanic earthquake, 162 rockfall events, and 50 PDCs.

A 200-meter-tall plume characterized by moderate emissions was also generated, drifting northeast.

Also, a sulfur dioxide influx of 702 tons per day was recorded, and ground deformation continues to be observed.

If Mayon Volcano shows heightened activity indicating the possibility of an explosive eruption, PHIVOLCS will increase the status to Alert Level 4, Ms. Bornas said.

Mayon is the most active of the 22 active volcanoes in the Philippines, having erupted more than 50 times over the last four centuries. Its most destructive eruption occurred in February 1814, claiming the lives of approximately 1,200 people. 

The Philippines is located within the “Pacific Ring of Fire,” a belt characterized by a high concentration of active volcanoes and frequent, intense earthquakes. — Edg Adrian A. Eva

US immigration agent fatally shoots woman in Minneapolis, mayor disputes government claim of self-defense

Masked law enforcement officers, including Immigration and Customs Enforcement agents, walk into an immigration court in Phoenix, Arizona, US, May 21, 2025. — REUTERS/CAITLIN O’HARA

MINNEAPOLIS — A US immigration agent shot and killed a 37-year-old woman in her car in Minneapolis on Wednesday during an immigration enforcement surge, according to local and federal officials, the latest violence in President Donald Trump’s nationwide crackdown on migrants.

Minneapolis Mayor Jacob Frey adamantly rejected the Mr. Trump administration’s assertion that the agent fired in self-defense, saying video of the shooting directly contradicted what he called the government’s “garbage narrative.”

“They’re already trying to spin this as an action of self-defense,” a visibly angry Mr. Frey said at a press conference. “Having seen the video myself, I want to tell everybody directly – that is bullshit.”

Mr. Frey blamed federal immigration agents for sowing chaos in the city, telling ICE: “Get the fuck out of Minneapolis.” But he also urged residents to remain calm, as Democratic leaders in Minnesota, Washington and elsewhere called the ICE operation an unnecessary provocation that resulted in tragedy.

The Minnesota City Council identified the dead woman as Renee Nicole Good and said she was “out caring for her neighbors this morning and her life was taken today at the hands of the federal government.” The council statement also demanded that ICE leave the city immediately.

As night fell, a crowd that appeared thousands strong gathered at the site of the shooting in a residential area of the city’s Central neighborhood, aerial TV images showed. Candles placed at the site lighted up the winter night. Earlier, some protesters were met by heavily armed federal agents wearing gas masks who fired chemical irritants.

Opponents of Mr. Trump called for protests in several American cities, raising the risk that the killing could become a national flashpoint over his deployment of federal officers to Democratic-led cities and states.

Kristi Noem, secretary of the Department of Homeland Security, told a press conference that Immigration and Customs Enforcement officers were responding to a vehicle stuck in the snow when they were harassed by a “mob of agitators.”

One of the protesters, later identified as Ms. Good, followed agents all day, Ms. Noem said. Ms. Good blocked their vehicle and refused orders to move out of the way, she said.

“She then proceeded to weaponize her vehicle, and she attempted to run a law enforcement officer over,” Ms. Noem told a news conference, saying the car struck the officer.

She characterized that as domestic terrorism and said the act was under investigation by the FBI. State officials said they would launch their own investigation.

Videos of the shooting posted on social media and verified by Reuters raised doubts about the government’s account. One widely shared video showed a maroon Honda SUV partially blocking the road. As the clip begins, the driver inches forward before stopping to let another car pass.

The driver, with the window down, then appears to gesture to an approaching pickup truck to go ahead as well. Instead, the truck stops, and two officers exit and approach the car on foot.

As one of the officers orders the driver out of the SUV and grabs at the door handle, the vehicle reverses briefly, and a third agent moves to the front of the car from the passenger side.

The driver then advances, steering to the right in what appears to be an effort to drive away from the officers. The agent in front of the car pulls his weapon, steps back and fires as the moving car’s left front bumper comes close to his legs.

He fires three shots, with at least one shot after the car’s front bumper had passed him. It was not clear from the video whether the car made contact with the officer, who stayed on his feet throughout the encounter.

After the shots, the car accelerates and crashes into parked cars and a utility pole.

Ms. Noem said the officer was experienced and “followed his training.” He was treated by a doctor at a hospital and released.

VICTIM WAS ‘EXTREMELY COMPASSIONATE’
Ms. Good’s mother told the Minnesota Star Tribune that her daughter was “extremely compassionate,” and she said Ms. Good was not the type of person to confront ICE agents.

“She’s taken care of people all her life,” her mother, Donna Ganger, told the newspaper. “She was loving, forgiving and affectionate.”

The police chief said Ms. Good, who was married, was not a target of immigration operations. A witness whose home is nearby told CNN that Ms. Good lived in the neighborhood.

The Department of Homeland Security has said it is conducting the “largest DHS operation ever” in Minnesota with 2,000 officers deployed to arrest “fraudsters, murderers, rapists, and gang members.” The surge follows allegations of wide-scale welfare fraud involving Somali immigrants, whom Mr. Trump has called “garbage.” Ms. Noem said authorities had arrested 1,500 people in recent weeks.

WALZ, TRUMP AT ODDS
Democratic Governor Tim Walz, who ran for US vice president in the 2024 election won by Mr. Trump, also rejected the federal government’s account and placed the blame for the shooting on the Trump administration. He told a press conference that he had put the National Guard on alert for possible deployment.

“What we are seeing is the consequences of governance designed to generate fear, headlines and conflict,” Mr. Walz said. “…Today that recklessness cost someone their life.”

In a social media post, Mr. Trump said the video showed the woman “violently, willfully, and viciously ran over the ICE Officer, who seems to have shot her in self defense.”

The competing narratives highlighted US political polarization, in which Mr. Trump’s supporters enthusiastically endorse his version of events while opponents contend his assertions are often provably false.

WITNESSES DESCRIBE SHOOTING
Venus de Mars, a 65-year-old who lives near the site of the shooting, described seeing paramedics perform CPR on a woman collapsed next to a snowbank near the crashed car.

“There’s been lots of ICE activity but nothing like this,” Ms. de Mars said. “I’m so angry. I’m so angry, and I feel helpless.”

The fraud allegations date to 2020 against some nonprofit groups in the Somali community that administer childcare and other social services programs.

At least 56 people have pleaded guilty since federal prosecutors started to bring charges in 2022 under Mr. Trump’s Democratic predecessor, Joe Biden. Mr. Walz announced this week he would not seek a third term as governor, saying he did not have time both to address the fraud scandal and to campaign.— Reuters

Bushfires rage in Australia’s southeast, authorities warn of ‘catastrophic’ Friday conditions

SMOKE from bushfires rises north of Beaufort, near Ballarat in Victoria, Australia, Feb. 24, 2024. — AAP IMAGE/DAVID CROSLING/POOL/VIA REUTERS

SYDNEY — Uncontrolled fires burned through bushland in Australia’s Victorian state on Thursday, forcing communities to evacuate and authorities to warn of a “catastrophic” fire danger rating for Friday.

Amid temperatures forecast to exceed 40 degrees Celsius (104 degrees Fahrenheit) in parts of the state, two bushfires of more than 3,000 hectares in size were raging near the towns of Longwood and Walwa. They have destroyed at least two structures and are expected to continue to spread on Friday as heat and wind pick up.

Friday’s fire danger rating will be set at “catastrophic”, the highest level, and both fires pose a real risk of loss of life and property, authorities said.

“Tomorrow is a very, very dire bushfire day in the state of Victoria,” Country Fire Authority Chief Officer Jason Heffernan told a press conference.

Meteorologists have said conditions are on par with 2019, when bushfires destroyed wide swathes of southeastern Australia, killing 33 people, in what became known as the Black Summer.

Some 450 schools in Victoria are set to close on Friday.

For Thursday, total fire bans have been issued in several districts.

In New Zealand, the country’s weather provider, MetService, also warned of record warm temperatures over the weekend as the heatwave moves across the Tasman Sea.

It has issued heat alerts for parts of the eastern coast of New Zealand and the north of the South Island.— Reuters

China hacked email systems of US congressional committee staffers, FT reports

WANGXINA-FREEPIK

China has hacked emails used by staff members of powerful committees in the US House of Representatives, as part of a cyber espionage campaign known as Salt Typhoon, the Financial Times reported on Wednesday, citing people familiar with the matter.

China accessed email systems used by some staffers on the House China committee as well as aides on panels covering foreign affairs, intelligence and the armed services, the report said.

One person familiar with the attack told the FT it was unclear whether the attackers had accessed lawmakers’ emails in the intrusions, which were detected in December.

Reuters could not immediately verify the report. The White House had no immediate comment. The Chinese Embassy in Washington, the Chinese foreign ministry and the offices of the four committees did not immediately respond to requests for comment.

In November, the Senate Sergeant at Arms notified multiple congressional offices of a “cyber incident,” where hackers may have accessed communications between the nonpartisan Congressional Budget Office, which provides key financial research data to lawmakers, and some Senate offices.

The Salt Typhoon hacks have long rattled the US intelligence community. Hackers have also been alleged to have intercepted conversations, including those between prominent US politicians and government officials.

US officials have previously alleged that the hacking group is prepositioning itself to paralyze critical American infrastructure in case of a conflict with China.

Beijing has repeatedly denied being behind the intrusions.

Early last year, the US imposed sanctions on alleged hacker Yin Kecheng and cybersecurity company Sichuan Juxinhe Network Technology, accusing both of being involved in Salt Typhoon.— Reuters

Job gains by industry

THE Philippines’ unemployment rate unexpectedly rose year on year in November 2025 despite the start of the holiday hiring season, as bad weather and job losses in key industries outweighed the usual fourth-quarter lift, data from the Philippine Statistics Authority (PSA) showed. Read the full story.

Jobless losses by industry

THE Philippines’ unemployment rate unexpectedly rose year on year in November 2025 despite the start of the holiday hiring season, as bad weather and job losses in key industries outweighed the usual fourth-quarter lift, data from the Philippine Statistics Authority (PSA) showed. Read the full story.

Philippine jobless rate climbs despite holiday hiring

Job seekers line up at a job fair in Manila. — PHILIPPINE STAR/EDD GUMBAN

By Erika Mae P. Sinaking

THE Philippines’ unemployment rate unexpectedly rose year on year in November 2025 despite the start of the holiday hiring season, as bad weather and job losses in key industries outweighed the usual fourth-quarter lift, data from the Philippine Statistics Authority (PSA) showed.

Preliminary results of the Labor Force Survey (LFS) put the jobless rate at 4.4% in November, up from 3.2% a year earlier, though lower than 5% in October. This translated to about 2.25 million jobless Filipinos, compared with 1.66 million in November 2024 and 2.54 million in the previous month.

Labor Secretary Bienvenido E. Laguesma said the November figures were unexpected given the seasonal pattern of stronger hiring toward the yearend.

“Yes, I am surprised because, as you pointed out, ‘ber’ months are associated with increased hiring. Note, however, that the November 2025 stats are better than the October 2025 figures indicating recovery,” he told BusinessWorld.

National Statistician and PSA Undersecretary Claire Dennis S. Mapa said the year-on-year weakening in the jobs market reflected weather-related disruptions and employment declines across several major sectors.

“[There were] two major typhoons in November last year, including Tinio, and their impact was widespread,” he told a news briefing on Wednesday. He noted that the storms disrupted economic activity, transport and supply chains, affecting hiring and job retention across regions.

In the first 11 months of 2025, the unemployment rate averaged 4.19%, higher than the 3.9% average recorded in the same period in 2024.

The November employment data also showed mixed signals. The number of employed Filipinos rose to 49.26 million in November from 48.62 million in October, pointing to some seasonal recovery.

However, employment remained below the 49.54 million recorded in November 2024, underscoring the lingering effects of disruptions earlier in the year.

As a result, the employment rate slipped to 95.6% in November from 96.8% a year earlier, though slightly better than 95% in October.

Mr. Mapa said the typical hiring boost during the “ber months” was weaker than expected. He noted that there were 49.26 million employed people in November 2025, 277,000 fewer than a year earlier.

The impact was most visible in sectors sensitive to mobility, such as tourism and logistics.

The average employment rate for the first 11 months of 2025 stood at 95.8%, lower than the level recorded in the comparable period in 2024.

UNDEREMPLOYMENT

Data from the PSA showed underemployment rate fell to 10.4% in November from 10.8% in November 2024 and 12% in October. This was the lowest underemployment rate in nine months or since 10.1% in February.

The ranks of underemployed Filipinos — those who want longer work hours or an additional job — dropped to 5.11 million in November from 5.35 million a year earlier and 5.81 million in October.

Year to date, the average underemployment rate stood at 12.26%, inching up from 12% a year earlier.

Labor force participation rate rose to 64% in November from 63.6% in October but slipped from 64.6% a year earlier. This translated to a labor force of 51.52 million in November, higher than the 51.16 million in October and 51.2 million in No-vember 2024.

PSA data showed job losses were concentrated in industries directly affected by adverse weather conditions and weaker consumer activity in November.

Accommodation and food service activities had the largest year-on-year decline, shedding 309,000 jobs. Losses were concentrated on restaurants and mobile food service activities, which cut 191,000 positions, followed by short-term accommodation activities with a reduction of 76,000 jobs, and event catering services, which declined by 23,000.

Wholesale and retail trade, including the repair of motor vehicles and motorcycles, also saw jobs drop by 258,000 year on year.

Employment declines were also recorded in retail sales in stalls and markets dealing in food, beverages, and tobacco, as well as buyer stalls and motor vehicle sales. Other service activities shed 250,000 jobs, driven largely by cuts in personal wellness services and domestic services.

Jobs in manufacturing fell by 150,000, reflecting continued weakness in the sector. Mr. Mapa said the semiconductor and electronics sector, in particular, lost 106,000 jobs year on year in November.

He said that manufacturing of other food products and the processing and preserving of fruits and vegetables also posted notable job losses, partly due to supply-chain disruptions and reduced operating days following the typhoons.

“These sectors — accommodation and food service activities, wholesale and retail trade, other service activities, and manufacturing — contributed to the decline in the number of employed persons, which in turn pushed unemployment higher year on year,” Mr. Mapa said.

Some sectors, however, recorded employment gains. Public administration and defense, including compulsory social security, added 185,000 jobs year on year, while education employment increased by 176,000, partly reflecting continued hiring in government and public institutions.

BETTER IN DECEMBER?

Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., told BusinessWorld that the relatively higher unemployment rate in November was “partly due to the series of typhoons, storms, flooding that led to weather-related disruptions that reduced business days, sales, incomes for some businesses, consumers, and other institutions.”

 

For Chinabank Research, the decline in manufacturing jobs, particularly those in the production of semiconductors and other electronic components, reflected the impact of recent typhoons on business operations.

“Looking ahead, the sector continues to face risks from the challenging external environment, though a pickup in domestic demand could help support factory activity and improve job prospects,” it said.

Chinabank Research said it expects holiday demand in December to have provided support to employment and consumption at the end of 2025.

“December might show better data with stronger holiday-driven demand, though this seasonal boost will likely wane this month. This year, we expect the labor market to remain generally robust and support a recovery in consumption growth,” it added.

Mr. Ricafort said the labor market may have improved in December 2025 amid peak seasonal demand, better weather conditions, and increased economic activity.

“Nevertheless, unemployment rate at 3%-4% levels is still considered among the best in about 20 years or since revised records started in 2005,” he said.

Mr. Ricafort also pointed to the government’s planned catch-up spending in 2026, anchored on governance reforms and anti-corruption measures, as a potential boost to investor confidence, economic growth, and employment going forward.

In a statement, the Department of Economy, Planning, and Development (DEPDev) said the latest LFS results underscore the need to strengthen workforce competitiveness and business resilience amid persistent disruptions.

“The government is prioritizing investments in skills development, lifelong learning, and social protection systems to enable workers to transition across sectors and withstand economic shocks. Strengthening workforce competitiveness is one of the key elements to attract investments that generate quality jobs,” DEPDev Secretary Arsenio M. Balisacan said in a statement.

For his part, Mr. Laguesma said the Department of Labor and Employment, in collaboration with the private sector, will ramp up efforts to come up with “better employment results” in the coming months.

Philippine jobless rate at 4.4% in November

THE Philippines’ unemployment rate unexpectedly rose year on year in November 2025 despite the start of the holiday hiring season, as bad weather and job losses in key industries outweighed the usual fourth-quarter lift, data from the Philippine Statistics Authority (PSA) showed. Read the full story.

Peso slides to fresh record low of P59.355 per dollar

PHILIPPINE STAR/ WALTER BOLLOZOS

By Aaron Michael C. Sy, Reporter

THE PESO fell to a fresh record low against the dollar on Wednesday amid dovish signals from the Philippine central bank.

The local unit closed at P59.355 versus the greenback, declining by 14.5 centavos from its P59.21 finish on Tuesday, data from the Bankers Association of the Philippines showed.

It surpassed its previous record low of P59.22 logged on Dec. 9, 2025.

The peso opened Wednesday’s trading session weaker at P59.24 versus the dollar. Its intraday best was at P59.20, while its weakest showing was at P59.38 against the greenback.

Dollars traded declined to $1.317 billion on Wednesday from $1.386 billion on Tuesday.

Fresh signals from the Bangko Sentral ng Pilipinas (BSP) of a potential rate cut next month weighed on the local unit, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“The peso weakened anew after the BSP signaled a potential rate cut in February which could further narrow domestic and US rate differentials,” another trader likewise said in an e-mail.

BSP Governor Eli M. Remolona, Jr. said on Tuesday that a rate cut at its Feb. 19 meeting remains on the table amid “reasonably low” December inflation and below-target economic growth last year.

“I can say that we’re very close to where we want to be in terms of policy… There’s a chance that we may cut some more, and there’s also a chance that we may not move at all. But there’s not a lot of probability that we will raise in 2026,” he said.

Mr. Remolona also said the BSP would only intervene in the foreign exchange market if the peso’s depreciation is “sharp enough” to impact inflation.

“The peso is under pressure following the dovish Bangko Sentral ng Pilipinas comments and the relatively relaxed stance on its recent depreciation trend,” Wee Khoon Chong, a senior APAC market strategist at BNY, was quoted as saying in a Bloomberg News report.

Bloomberg reported that Mr. Remolona declined to comment on Wednesday when asked whether the BSP is intervening in the currency market to support the peso and if he sees it breaching P60 against the dollar.

Lower growth prospects, weakening current-account balance and deterioration of investor sentiment are all weighing on the peso in the short term, Mr. Chong said.

The local unit may have also weakened due to a knee-jerk reaction by investors following the US attack on Venezuela, Reyes Tacandong & Co. Senior Adviser Jonathan L. Ravelas said in a Viber message.

“The dollar-peso closed higher as market sentiment continued to sour amid geopolitical concerns following the US attack on Venezuela,” a trader likewise said by telephone.

For Thursday, the first trader said the market could remain cautious as it awaits US labor data and hopes for intervention by the central bank. “Upside may remain sluggish,” the trader said.

The first trader sees the peso moving between P59.10 and P59.50 per dollar on Thursday, while both the second trader and Mr. Ricafort expect it to range from P59.20 to P59.45.

Mr. Ravelas sees the local unit moving between P59 and 59.30 per dollar. — with Bloomberg News

NG debt inches up to record-high P17.65T

REUTERS/THOMAS WHITE/ILLUSTRATION

THE PHILIPPINES’ total outstanding debt inched up to a fresh high of P17.65 trillion as of end-November, the Bureau of the Treasury (BTr) said.

Latest data from the Treasury showed that the National Government’s (NG) outstanding debt went up by 0.49% to P17.65 trillion in November from P17.56 trillion at end-October 2025.

The debt level is already 1.7% above the projected year-end level of P17.36 trillion.

November also marked the fifth month in a row that the end-2025 debt projection was breached.

Year on year, NG debt jumped by 9.94% from P16.05 trillion at the end of November 2024.

“The month-on-month increase was underpinned by the net issuance of domestic and external debt, which was partly offset by significantly lower valuations of foreign currency-denominated obligations due to the peso’s appreciation,” the BTr said in a statement on Wednesday.

The peso appreciated against the US dollar from P58.771 at the end of October to P58.729 at the end of November 2025.

NG debt is the total amount owed by the Philippine government to creditors, including international financial institutions, development partner countries, banks, global bondholders, and other investors.

In November, the bulk or 68.66% of the debt stock came from domestic sources, while the rest came from external sources.

The BTr said it continues to borrow mainly from domestic creditors and in local currency to keep debt levels “sustainable.”

“This is because peso obligations do not fluctuate with foreign exchange rates and the payment of interest redounds to the benefit of Filipino investors, further boosting domestic income,” it said.

Domestic debt inched up by 0.6% to P12.12 trillion as of end-November from P12.05 trillion as of end-October. This is mainly composed of government securities.

At end-November, debt was already 0.6% higher than the P12.04-trillion year-end domestic debt projection.

“This (increase) was driven by the P71.85 billion in net issuance of government securities, despite a P0.12-billion reduction in peso valuation on retail dollar bonds,” the BTr said.

Since the start of 2025, domestic debt jumped by 10.86% or P1.19 trillion. Of this, P1.18 trillion came from fresh issuances and P2.52 billion “was caused by the weakening of the peso from its level at the end of 2024.”

Year on year, domestic debt rose by 10.95% from P10.92 trillion recorded in November 2024.

Meanwhile, external debt stood at P5.53 trillion as of end-November, up 0.26% from P5.52 trillion in the previous month. This also exceeded the P5.32-trillion external debt projection by 4.07%.

“This is due to the P22.84 billion in net loan availment for the month, which was offset by the P8.73 billion in downward valuation adjustments caused by favorable foreign exchange movements,” the Treasury said.

The BTr noted that the stronger peso against the US dollar trimmed foreign currency debt valuation by P3.94 billion. At the same time, third-currency movements, such as the Japanese yen and the euro, contributed another P4.79 billion to the valuation cut.

Year on year, foreign debt climbed by 7.81% from P5.13 trillion in 2024.

Foreign debt was composed mainly of P2.82 trillion in global bonds and P2.71 trillion in loans.

External debt securities totaled P2.39 trillion in US dollar bonds, P258.77 billion in euro bonds, P58.73 billion in Islamic certificates, P57.01 billion in Japanese yen bonds, and P54.77 billion in peso global bonds.

“The NG’s external financing operations remained prudent, measured, and anchored on long-term debt sustainability considerations,” the BTr said.

“External borrowings continue to be largely concessional and program-based, offering very long maturity terms and relatively lower interest costs, thereby supporting a cost-effective and resilient debt profile.”

Since the start of the year, NG external debt jumped by 8.01% or P410.04 billion.

“Of the total, P276 billion was due to new loans and bonds, while P134.04 billion was net adjustments to valuation linked to peso depreciation against foreign currencies in the first eleven months of 2025,” it added.

For November, NG-guaranteed obligations increased by 3.38% to P356.04 billion from the end-October level of P344.41 billion.

The BTr attributed the monthly increase to the net availment of domestic guarantees by the Power Sector Assets and Liabilities Management Corp., amounting to P12.71 billion.

However, external guaranteed repayments and favorable exchange rate movements tempered the increase by P0.42 billion and P0.66 billion, respectively, it added.

Year on year, NG-guaranteed obligations fell by 15.64% from P422.03 billion.

WAKE-UP CALL

Jonathan L. Ravelas, a senior adviser at Reyes Tacandong & Co., said the record-high debt is a “wake-up call.”

“The challenge now is balancing fiscal discipline with growth,” he said in a Viber message.

Mr. Ravelas also urged the government to accelerate infrastructure and investment projects that generate jobs and revenue, while keeping borrowing focused on productive spending.

“Otherwise, higher debt means higher interest costs — and less room to maneuver,” he said.

Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said that the higher debt stock in November partly reflected new government securities issued to cover the wider fiscal gap in recent months.

The budget deficit swelled to P1.26 trillion as of end-November from the P1.18-billion deficit in the same period in 2024.

“The weaker peso exchange rate vs. the US dollar over the past 3.5 years by about 16% effectively increased the peso equivalent of the outstanding National Government external debts when converted to pesos,” he said in a Viber message.

Asked if the government would be able to bring down debt to P17.36-trillion programmed level, he said: “Already beyond the target, with possible budget deficits still in December 2025.”

Meanwhile, Mr. Ravelas said a weaker peso and failure to address the country’s issues would inflate the debt in 2026.

NG debt as a share of gross domestic product (GDP) went up to 63.1% at end-September from 60.1% in the same period last year. This is above the 60% threshold deemed sustainable for developing countries.

The Department of Finance expects the NG debt-to-GDP ratio to ease to 61.3% by end-2025 and eventually fall to 58% by 2030. — Aubrey Rose A. Inosante

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