PHL's external debt up in June — BSP

The country’s external debt — the combined foreign currency-denominated obligations of private and government entities in the Philippines — has reached $62.5 billion as of end-June, according to the Bangko Sentral ng Pilipinas (BSP).   The increase — by 1.7 percent from $61.4 billion as of the same period last year — was attributed to higher funding requirements of private and government borrowers. In a report released on Friday, the BSP said the country’s latest external debt translated to an external debt-to-gross domestic product ratio of 26.6 percent — an improvement from the 28.8 percent recorded in the same period last year. The BSP said the decline in the debt ratio, which is the proportion of the debt to the country’s gross domestic product (GDP), showed the Philippine’s improving capability to service its maturing obligations to foreign creditors. The BSP said the decline in the ratio occurred because the increase in the size of the economy was faster than the growth in the external debt. It said the country’s external debt is manageable. It noted that the bulk — or 88.8 percent — of its foreign currency-denominated debts have medium- to long-term maturities. The average maturity of the external debt is 20.5 years, the BSP said. — KBK, GMA News