The Philippines' debt service burden has climbed by 16.8% to $12.85 billion by the end of September 2023, up from $11 billion in the previous year. This increase is driven by higher principal and interest payments on various long-term debts.
The country's debt service burden increased by 16.8 percent to $12.85 billion as of the end of September from $11 billion a year earlier, according to preliminary data from the Bangko Sentral ng Pilipinas (BSP). Principal payments rose by 16.8 percent to $6.93 billion from $5.93 billion, while interest payments also increased by 16.8 percent to $5.93 billion from $5.07 billion.
The debt service burden encompasses principal and interest payments on medium- to long-term credits such as those from the International Monetary Fund, loans subject to Paris Club agreements, and debt restructuring by commercial banks, as well as new money facilities. It also includes interest payments on banks' and non-banks' fixed and revolving short-term liabilities, but excludes prepayments on future years' maturities of foreign loans and principal payments on fixed and revolving short-term liabilities. The BSP previously reported that the country's outstanding external debt totaled $139.64 billion in the July-September period, up from $130.18 billion as of the end of June. It stated that the country's external debt ratios remained at manageable levels as of the third quarter despite additional borrowings. Broken down, $86.88 billion of the amount was owed by the public sector, an increase of 17.8 percent from the $73.7 billion recorded in the same period in 2023. Private-sector debt amounted to $52.76 billion, 16.9 percent higher than the $45.13 billion reported at the end of September last year. As a percentage of gross domestic product (GDP), the debt service burden increased to 3.9 percent as of the third quarter from 3.5 percent a year earlier. External debt, meanwhile, was equivalent to 30.6 percent from 28.9 percent in the second quarter
Philippines Debt Debt Service Economic Growth Interest Payments
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