The Philippines’ foreign debt compared to the size of the domestic economy increased to 29 percent by the end of March, up from 27.5 percent at the end of last year, according to the Bangko Sentral ng Pilipinas (BSP). Despite this increase, the BSP stated that the debt level is still prudent.
The country’s external debt, which includes borrowings from non-residents, grew by 6.8 percent or $7.5 billion to reach $118.8 billion as of the end of March, compared to $111.3 billion at the end of December.
This increase can be attributed to a change in the scope of the external debt, which now includes non-resident holdings of peso-denominated debt securities issued onshore. This change added $3.8 billion to the foreign debt stock. Other factors contributing to the debt growth include borrowings for the national government’s financing needs, pandemic recovery measures, and infrastructure programs.
Furthermore, the maturity profile of the country’s external debt remains predominantly medium- and long-term (MLT), meaning that the original maturities are longer than one year. MLT loans account for 85.4 percent of the total foreign debt.
The public sector’s external debt increased by 11.6 percent to $75.2 billion in the first quarter, raising its share to 63.3 percent of the total external debt. Government borrowings account for 90 percent of the public sector obligations.
Japan, the United States, and the United Kingdom are the largest sources of foreign loans for the Philippines, with Japan providing $14.3 billion, followed by the United States with $3.6 billion, and the United Kingdom with $3.2 billion.
The majority of the country’s debt is denominated in US dollars, accounting for 76 percent of the total, followed by Japanese yen at 8.3 percent.
Subscribe to INQUIRER PLUS
Subscribe to INQUIRER PLUS to gain access to The Philippine Daily Inquirer and over 70 other titles. With your subscription, you can share up to 5 gadgets, listen to the news, download articles as early as 4am, and share articles on social media. Call 896 6000 now.
Contact Us
If you have any feedback, complaints, or inquiries, please contact us.
Denial of responsibility! SamacharCentrl is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
Denial of responsibility! Samachar Central is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
