By The Financial District
Oct 23, 20231 min
The Philippines' debt service burden increased by 137.4% to $8.19 billion at the end of July, compared to $3.45 billion in the same period a year earlier, according to preliminary data from the Bangko Sentral ng Pilipinas (BSP).
Both principal and interest payments saw significant increases during the seven-month period.
Both principal and interest payments saw significant increases during the seven-month period. Principal payments surged by 109.6% to $4.28 billion from $2.04 billion, while interest payments increased by 177.7% to $3.9 billion from $1.40 billion.
The debt service burden includes principal and interest payments on medium- to long-term credits, such as those from the International Monetary Fund, loans subject to Paris Club agreements, debt restructuring by commercial banks, and New Money Facilities.
It also includes interest payments on fixed and revolving short-term liabilities of banks and nonbanks but does not account for prepayments on future years' maturities of foreign loans and principal payments on fixed and revolving short-term liabilities.
The country's outstanding external debt stood at $117.91 billion as of end-June, marking a 9.49% increase compared to the previous year's $107.69 billion.