The country's total external debt remains at a manageable level despite a 1.2% increase to P7.29 trillion ($130.18 billion) as of June from the P7.21 trillion ($128.69 billion) recorded in the first quarter as external debt ratio (EDT expressed as a percentage of gross domestic product) slightly improving to 28.9% from 29.0%.
According to the Bangko Sentral ng Pilipinas (BSP), the slight P83.43 billion ($1.49 billion) increase was mainly driven by net availments aggregating P83.00 billion ($1.50 billion) as the national government raised P146.14 billion ($2.61 billion( from the issuance of its P112 billion ($2 billion) Dual Tranche Fixed Rate Global Bonds under its Sustainable Finance Framework and the P34.26 billion ($611.81 million) borrowings from official creditors.
"Despite the increase in the debt stock, the external debt ratio expressed as a percentage of gross domestic product) remains at a prudent level, slightly improving to 28.9% from 29% last quarter," it said.
The BSP said prior periods' adjustments of P27.62 billion ($493.28 million) due to borrowers' late reporting and net acquisitions of Philippine debt securities by non-residents from residents aggregating P13.37 billion ($238.80 million) also contributed to the rise in the debt level.
The BSP said other critical external debt indicators also remained at comfortable levels.
It said gross international reserves (GIR) were at P5.89 trillion ($105.19 billion) as of June 2024 and represented 3.84 times the 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% from 11.1% 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.
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