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BSP: Philippine foreign debt still manageable
MANILA: The Philippines’ total outstanding external debt remained a prudent level as of the end of September with US$105.93bil (RM445.81bil), representing 27.3% of the domestic economy
The Bangko Sentral ng Pilipinas (BSP) governor Benjamin Diokno (pic) said in a statement the low ratio of total outstanding external debt to gross domestic product (GDP) means that the Philippines sustained a strong position to service foreign borrowings in the medium to long term.
“The country’s (debt-to-GDP) ratio remains one of the lowest as compared to other Asean member countries,” Diokno said, adding that other key external debt indicators also remained at prudent levels.
The country’s gross international reserves were pegged at US$106.6bil (RM448.63bil) as of Sept 30, representing 8.6 times cover for short-term debt.
In the nine months to September, debt servicing – including principal and interest – was pegged at US$7.3bil (RM30.72bil) or 2.6% of GDP.
Increased payments raised the debt service ratio to 8.1% of GDP from 7.2% in the same period of 2020.
A measure of adequacy of the country’s foreign exchange earnings to meet maturing obligations, this ratio relates principal and interest payments to exports of goods and receipts from services and primary income.
The country’s debt stock swelled by 15% year-on-year in the first nine months of 2020. — The Philippine Daily Inquirer/ANN