June 23, 2013

Phl external debt down to $59 B in Q1 due to strong USD

Foreign debt stock declined to $59  B in the first quarter of this year, the central bank reported on Friday. The tally for the first three months was down from $61.6 B in the same period last year and $60.3 B in the fourth quarter of 2012.

Central bank Governor Amando Tetangco Jr., in a statement, attributed the decline to the strengthening of the US dollar during the period that caused debt in other currencies to dwindle in value. External debt accounted for 22.8% of economic output in the first quarter, down from 26.9% a year ago.

The bulk of foreign debt held by the public sector was at $42.9 B, while the private sector owed $16.1 B. External debt refers to all types of borrowings by Philippine residents from non-residents that are approved and registered by the central bank. - WealthSec