Quantcast

PH foreign debt down by 2.1%

By |



The country’s foreign debt stock dropped by 2.1 percent to $59 billion at the end of the first quarter of the year from $60.3 billion as of end 2012, according to the Bangko Sentral ng Pilipinas.

“This was due to negative foreign exchange revaluation as the US dollar strengthened, particularly against the Japanese yen, which reduced the dollar value of yen-denominated loans,” the BSP said in a statement released on Friday.

Year-on-year, the country’s external debt stock dropped by $2.6 billion.

External debt refers to all obligations of Filipinos from overseas.

“Major external debt indicators remained at comfortable level in the first quarter,” BSP Governor Amando M. Tetangco Jr. said in the statement, noting that the BSP’s foreign exchange reserves were enough to pay 8.6 times of the country’s maturing obligations.

As a percentage of gross domestic product (GDP), foreign liabilities declined to 22.8 percent from 26.9 percent last year.

The BSP attributed the improvement in the foreign debt-to-GDP ratio to the expansion of the Philippine economy in the first quarter, clocking it at 7.8 percent. This was the fastest growth rate in all of Asia and the highest so far under the Aquino administration.

The country’s external debt service ratio, or the ratio of debt payments to income from exports and services, improved to 7.8 percent as of March from 9.4 percent a year ago. The BSP said this was well below the international benchmark of 20 percent, reflecting the “sufficiency of foreign exchange (income) to meet maturing obligations.”

More than 83 percent of the county’s external debt is considered medium to long-term. A larger share of long-term debt means maturities are spread out over time, reducing the risk of sudden shocks that may come from a steep depreciation of the peso, which makes foreign debt more expensive.

Public sector foreign debt, which accounted for the bulk of the total, fell to $42.9 billion as of March from $45.2 billion in December, following an effort by fiscal officials to reduce the country’s reliance on foreign borrowings to fund the deficit.

In contrast, private sector foreign debt rose to $16.1 billion from $15.2 billion in the same period as local firms borrowed more cheap money from all sources to fund their expansion.


Follow Us






Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

  • joboni96

    kung hindi ba namang hunghang at kolonisadong utak
    mga doctorated financial leaders natin

    nabayaran na natin sana mga utang natin
    $84B (foreign reserves) – $61.7B (foreign debt) = $22 billion left foreign reserves
    still enough foreign reserves

    this will result to P367 billion more for government projects
    coming from the automatic 20% debt payments in the national budget

    yan ding P367 billion na iyan kaya takot at nakikinabang
    ang mga doctorated financial leaders sa mga foreign banks and capitalists

    mahina rin ang mga senador at congressmen natin
    kung naging project yang P367 billion na iyan every year

    at 30% commission rate, that’s an additional more than P110 billion commission per year
    more chicks, more lands, more mansions, more businesses etc

    how about it mga honorable sirs lets retire our foreign debt

    • HoyGago

      Nakupo medjo mali ang intindi mo sa konsepto ng utang kapatid.

  • Kristoffer Atienza

    Dati sabi natin sanggol pa lang may utang na, at sinabi pa natin noon na ang batang yon ay may PhP5,000 na utang na hindi niya gusto.
    Ngayon sa pagbulusok ng ekonomiya ng Pilipinas PhP570 na lang ang utang ng bawat Pilipino. Great job! Mabuhay ang Marangal na Pilipinas!

  • eight_log

    2.1% LANGGGGGGGGG????????????????? Sa laki ng nalugi ng magaleng na CB sa kakabili ng $$$$$$$ 2.1% langa ang nabawas?????????????? PAIMBESTIGAHAN ETO … SINABOTAHE NG CB ANG PINAS!!!!!!



Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
Advertisement
Marketplace