PHL external debt rises 6.8% to $60.9B – BSP

The Bangko Sentral ng Pilipinas (BSP) on Thursday said the Philippines’ external debt rose by 6.8 percent due to higher government and private-sector borrowings as well as upward foreign-exchange revaluation amid a weak US dollar. The country’s outstanding external debt reached $60.9 billion as of end-March, BSP Gov. Amando Tetangco Jr. said in a statement. He said this is a $3.9-billion rise from the $57 billion booked in the same 2010 period. The ratio of the Philippines’ external debt to gross domestic product (GDP), however, went down to 29.5 percent as of end-March from 32.5 percent a year earlier. “Major external debt indicators remained at comfortable levels during the first quarter," Tetangco said. External debt refers to all BSP-approved or -registered borrowings by Philippine residents from non-residents. Tetangco said the Philippines’ external debt stock grew year-on-year due to the “net availments" of nearly $3.4 billion by public as well as private sector borrowers. He said P2.2 billion in foreign exchange revaluation adjustments, prompted by the US dollar’s general weakening against most major currencies, also contributed to this development. The BSP governor also said the increase was mitigated partly by higher investments in Philippine bonds and notes issued abroad. Tetangco said the Philippines’ external debt as of end-March was $900 million or 1.5-percent more than the $60-billion level it registered as of end-2010. He said this was due to the new borrowings by both public and private sectors amounting to $1.8 billion,which were partially offset by higher resident investments amounting to $1 billion in overseas-issued Philippine debt papers. — PE/VS, GMA News