The country’s outstanding foreign debt amounted to $60.9 billion as of end-March, up by 6.8 percent from $57 billion recorded in the same period last year, according to the Bangko Sentral ng Pilipinas.
Despite the increase, the share of the country’s foreign debt to economic output went down to 29.5 percent from 32.5 percent over the same period.
This is because economic growth, measured in terms of gross domestic product (GDP), outpaced the increase in foreign debt, the BSP said.
“External debt indicators [such as the debt-to-GDP ratio] remained at comfortable levels during the first quarter,” BSP Governor Amando Tetangco Jr. said in a statement.
The central bank added that the country’s ability to service its liabilities to foreign creditors has improved significantly, and this had been noticed by credit rating agencies.
In June, Moody’s Investors Service raised the country’s credit rating from three to two notches below investment grade, while Fitch Ratings raised its rating for the Philippines from two notches to one notch below investment grade.