PH external debt remains at manageable levels – BSP

Manila: The Philippines' total external debt (EDT) remains manageable despite the slight increase recorded in June, the Bangko Sentral ng Pilipinas (BSP) said. Data released by the BSP over the weekend showed that the country's EDT amounted to USD130.18 billion as of end-June, up by 1.2 percent from the USD128.69 billion recorded as of end-March 2024. The BSP said the increase was mainly driven by net availments aggregating USD1.50 billion as the national government raised USD2.61 billion from the issuance of its USD2 billion Dual Tranche Fixed Rate Global Bonds under its Sustainable Finance Framework and the USD611.81 million borrowings from official creditors. The BSP said prior periods' adjustments of USD493.28 million due to late reporting by borrowers as well as net acquisitions of Philippine debt securities by non-residents from residents aggregating USD238.80 million also contributed to the rise in the debt level. "Despite the increase in the debt stock, the external debt ratio expressed as a perce ntage of gross domestic product) remains at a prudent level, slightly improving to 28.9 percent from 29 percent last quarter," it said. The BSP said other key external debt indicators also remained at comfortable levels. It said gross international reserves (GIR) was at USD105.19 billion as of end-June 2024 and represented 3.84 times cover for short-term (ST) debt based on the remaining maturity concept. The BSP said 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, also improved to 9.5 percent from 11.1 percent for the same period last year due to 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 resources to meet maturing obligations," it added. Source: Philippines News Agency