PH Foreign Debt Hits $130.18 Billion as of End-June 2024—BSP

The Philippines’ total external debt (EDT) reached $130.18 billion by the end of June 2024, reflecting a $1.49 billion (1.2%) increase from the $128.69 billion recorded in March, according to the Bangko Sentral ng Pilipinas (BSP).

The BSP attributed the rise primarily to net availments of $1.50 billion, including $2.61 billion raised by the national government through the issuance of $2 billion Dual Tranche Fixed Rate Global Bonds and $611.81 million in borrowings from official creditors. Additionally, prior period adjustments and acquisitions of Philippine debt securities by non-residents contributed to the increase.

Despite the rising debt, the BSP maintains that the external debt remains at a “prudent level” relative to the country’s gross domestic product (GDP).

From June 2023 to June 2024, the country’s debt stock grew by $12.26 billion, driven mainly by $10.36 billion in net availments, of which $5.83 billion were private sector borrowings.

The BSP noted that other key external debt indicators remain “at comfortable levels,” with gross international reserves (GIR) standing at $105.19 billion, providing 3.84 times cover for short-term debt. Additionally, the debt service ratio (DSR) improved to 9.5% from 11.1% in the previous year.

Public sector external debt rose by $922.95 million to $79.83 billion in the second quarter, primarily due to the national government’s international borrowings for infrastructure and social services projects. Private sector debt also increased to $50.36 billion.