The Philippines’ foreign debt jumped by more than $12 billion, or 10 percent, to surpass the $130-billion mark for the first time on record as of end-June 2024, data from the Bangko Sentral ng Pilipinas show.
The BSP said the total external debt increased from $117.9 billion as of end-June 2023 to $130.18 billion as of end-June 2024. It was also up by 1.2 percent from $128.69 billion registered as of end-March 2024.
“Despite the increase in the debt stock, the external debt ratio [EDT expressed as a percentage of gross domestic product] remains at a prudent level, slightly improving to 28.9 percent from 29 percent last quarter,” the BSP said.
It said other key external debt indicators also remained at comfortable levels.
The gross international reserves (GIR) reached $105.19 billion as of end-June 2024 and represented 3.84 times cover for short-term (ST) debt based on the remaining maturity concept.
The debt service ratio (DSR), which relates principal and interest payments (debt service burden) to exports of goods and receipts from services and primary income, improved to 9.5 percent from 11.1 percent on lower debt service payments in the first half of 2024.
The DSR and the GIR cover for ST debt are measures of the adequacy of the country’s foreign exchange (FX) resources to meet maturing obligations.
The BSP said the rise in the debt level was led by net availments amounting to $1.50 billion as the national government (NG) raised $2.61 billion from the issuance of its $2-billion dual tranche fixed-rate global bonds under its Sustainable Finance Framework and $611.81 million borrowings from official creditors.
Prior periods’ adjustments of $493.28 million due to late reporting/registration by borrowers as well as net acquisitions of Philippine debt securities by non-residents from residents aggregating $238.80 million also contributed to the rise in the debt level.
Public sector external debt grew by $922.95 million, or 1.2 percent, to $79.83 billion in the second quarter of 2024 from the $78.90 billion level in the first quarter of 2024.
Private sector debt rose to $50.36 billion at the end of the second quarter of 2024, with its share of total debt recorded at 38.7 percent.
Data show that as of end-June 2024, the maturity profile of the country’s external debt remained predominantly MLT in nature. Under the remaining maturity concept, outstanding MLT borrowings stood at $102.79 billion with its share to total at 79 percent.
Meanwhile, outstanding ST debt under the remaining maturity concept comprised 21 percent or $27.39 billion of the total outstanding external debt.
Major creditor countries were Japan ($14.25 billion), the Netherlands ($4.31 billion) and the United Kingdom ($4.17 billion).
Loans from multilateral lenders ($34.73 billion) and bilateral creditors ($15.41 billion)] had the largest share ($50.14 billion or 38.5 percent) of the total outstanding debt, followed by borrowings in the form of bonds/notes ($43.38 billion or 33.3 percent) and obligations to foreign banks and other financial institutions ($29.11 billion or 22.4 percent); the rest ($7.56 billion or 5.8 percent) were owed to other creditors (mainly suppliers/exporters).
