Latest Stories

PH foreign debt fell 1.1% to $61.7B in Sept.


THE COLLECTIVE debt of Philippine private and government entities to foreign creditors dropped in September from a year ago due to the significant appreciation of the peso against the US dollar.

A report from the Bangko Sentral ng Pilipinas showed that the country’s outstanding liabilities denominated in foreign currencies amounted to $61.7 billion as of the end of September, falling by 1.1 percent from the $62.4 billion recorded in the same period last year.

The slight drop in the country’s foreign obligations came with the appreciation of the peso. The peso rose by about 4.5 percent against the US dollar since the start of the year, thus becoming one of the strongest performing currencies in Asia.

The peso closed at 41.88 against the greenback on the last trading day of September, strengthening from the 43.85:$1 level seen at the end of 2011.

The country’s collective debt is now much less than its total reserves of foreign currencies.

This observation, together with other favorable macroeconomic indicators, raised the country’s chances of attaining an investment grade.

The Philippines’ gross international reserves now stand at about $84 billion.

Also, the drop in the outstanding obligations aided in the further improvement on the country’s debt burden.

The central bank reported that the ratio of the outstanding debt denominated in foreign currencies to the country’s gross domestic product (GDP) settled at 25.6 percent by the end of September, improving from the 28.4 percent registered in the same period last year.

The declining debt-to-GDP ratio, a closely watched indicator of credit worthiness, is often cited as a reason behind expectations that the country will get an investment grade in 2013.

“Major external debt indicators remained strong in the third quarter,” the BSP said in the report.

The Philippines is currently rated a notch below investment grade by Fitch Ratings, Moody’s Investors Service, and Standard & Poor’s (S&P).

The other day, S&P said it revised its outlook on the country’s credit rating from “stable” to “positive,” which means there is a strong likelihood that the rating will be increased within the short term.

Follow Us

Follow us on Facebook Follow on Twitter Follow on Twitter

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.

Tags: Business , foreign debt , foreign reserves

  • joboni96

    kung hindi lang 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

    proper time also
    because our western lenders
    need the money

    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

    • http://www.facebook.com/profile.php?id=1711094250 Winzum Daoas

      yes that would be good but if we suddenly deplete our reserves. the peso would depreciate very rapidly and that is not very good for the economy. 

      • joboni96

        $22 billion left foreign reserves

        di pa ba sapat sa

        kolonisadong utak at

        pagka gastadora mo

    • 1voxPopuli

      well exactly what Greece did, lowered reserves to pay-up debts with EU.

      nasan ngayon ang Greece?

      • joboni96

        $22 billion left foreign reserves

        di pa ba sapat sa

        kolonisadong utak at

        pagka gastadora mo

  • blainz

    Very good news. Seems the country is on track for an investment grade rating next year, which would be huge. Something has to be done with the 60/40 rule on foreign businesses though, to maximize the gains from that.

    Philippines closing out the year on a strong note with positive economic reports left and right. Let’s hope 2013 will be even better. Happy New Year to all and onward Daang Matuwid!

  • Nagagalitna

    God Bless the Philippines!
    Nawa tuloy tuloy na ang pag abante ng bayang Pilipinas.

  • latino_boom

    Dito wala ring mga talangka at matatalino…kakasura naman 

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


  • Korea ferry captain defends actions, bodies seen in ship
  • Traffic starts to build up at toll plazas on Black Saturday
  • Flash floods hit 9 Tagum villages
  • No tsunami to hit PH after 6.9 quake jolts Solomon Islands–Phivolcs
  • Search resumes for bodies in Everest avalanche
  • Sports

  • Hamilton takes pole at Chinese Grand Prix
  • Duke’s Rodney Hood joining Jabari Parker in NBA draft
  • Phelps entered in 3 events at comeback meet
  • Boston prepares for huge wave of marathon visitors
  • Motivated LeBron James preps for postseason
  • Lifestyle

  • Levine designs womenswear with help from fiancee
  • Gabriel Garcia Marquez, Nobel laureate, dies at 87
  • Ford Mustang turns 50 atop Empire State Building
  • Pro visual artists, lensmen to judge Pagcor’s photo contest
  • ‘Labahita a la bacalao’
  • Entertainment

  • Myx TV premieres Asian American ‘docu-series’
  • A nutty finale for ‘Scandal,’ TV’s craziest show
  • EXO postpones release of mini album ‘Overdose’
  • ‘X-men’ filmmaker slams ‘fabricated’ sex attack claims
  • Singer Chris Brown’s bodyguard on trial in DC
  • Business

  • Fiat-Chrysler to produce iconic Jeep in China from 2015
  • US commerce secretary spells out economic facet of ‘pivot to Asia’
  • Italy sells luxury state cars on eBay
  • Asian shares mostly up in quiet trade
  • Dollar up in Asia on US jobs data, Ukraine deal
  • Technology

  • Nasa’s moon-orbiting robot crashes down
  • Netizens pay respects to Gabriel Garcia Marquez
  • Nokia recalls 30,000 chargers for Lumia 2520 tablet
  • Facebook rolls out ‘nearby friends’ feature
  • Netizens seethe over Aquino’s ‘sacrifice’ message
  • Opinion

  • Editorial cartoon, April 17, 2014
  • A humbler Church
  • Deepest darkness
  • ‘Agnihotra’ for Earth’s health
  • It’s the Holy Week, time to think of others
  • Global Nation

  • We treasure our Sierra Madre
  • OFW from UAE tests negative for MERS-Cov–health chief
  • Multicultural flock marks Good Friday in San Francisco
  • Las Vegas ‘Pinoy Pride’ fest hails Filipino heritage
  • Marking Jesus’ journey on Good Friday
  • Marketplace