Wednesday, September 20, 2017

PH external debt sheds $5.2B as of end-June, credit worth also improved

Manila, Philippines - as of the second quarter of 2017, the country’s total debt to foreign creditors has dropped, according to the Bangko Sentral ng Pilipinas (BSP).

Last Friday, BSP Officer-in-charge Diwa Guinigundo said that the Philippine’s external debt as of end of June this year was down by 6.7 percent or 5.2 billion year-on-year to $72.5 billion. 

The said improvement was partly due to loan prepayments by private sectors, and an increase in investments, says Guinigundo.

"was brought about by $1.2 billion in net repayments, largely by the private sector, and an increase in residents' investments in Philippine debt papers issued offshore of $110 million."

Guinigundo also noted that key external debt indicators remained at comfortable levels with gross international reserves at $81.3 billion as of end of June 2017, which represents 5.6 times cover for short term debt.

The external debt ratio which is a creditworthiness indicator, improved to 19.5 percent from 21.7% at end of June last year.

Read more on: Manila Bulletin