Debt service burden rises 20% to $14.5B

The country's external debt service burden increased in the 10 months to October 2024 as foreign debt hit an all-time high of $139.64 billion in the third quarter, the Bangko Sentral ng Pilipinas (BSP) said.

- By KEISHA TA-ASAN

Based on preliminary data, debt service burden jumped by 19.8 percent to $14.48 billion from January to October last year compared to $12.08 billion in the same period in 2023.

During the 10-month period, principal payments surged by 23.6 percent to $7.85 billion from $6.35 billion a year ago. Likewise, interest payments rose by 15.7 percent to $6.63 billion in the first 10 months from $5.73 billion.

The external debt service burden refers to the amount of money a country needs to pay back for the loans it has taken from other countries or organizations abroad. It represents principal and interest payments after rescheduling.