Foreign debt rises to $128.7 B in Q1

The country's foreign debt hit another record high of $128.69 billion in the first quarter as private sector banks and the national government borrowed more from offshore creditors, the Bangko Sentral ng Pilipinas (BSP) said.

-  KEISHA TA-ASAN

Based on BSP data, the latest foreign debt was 8.3 percent higher than the $118.81 billion incurred in the first quarter of last year and by 2.6 percent compared to the end-2023 level of $125.4 billion.

The increase in debt level was driven by the net availments of $2.5 billion largely by private sector banks, which raised $2.1 billion funds from offshore creditors for general corporate expenditures, refinancing of borrowings and liquidity purposes, the BSP said.

"Meanwhile, the $331 million net availments by public sector entities were mainly driven by the national government to fund its various projects/programs which include initiatives to enhance tax system efficiency and foster an enabling environment for digital technology adoption," it said.

The central bank also said the rise in external debt was due to positive investor sentiment as investments in Philippine debt securities by non-residents rose by $1.2 billion.

Adjustments made in prior periods also increased the Philippines' debt level by $551 million in the first quarter.