External debt service burden rises to nearly $5B at end-April

THE PHILIPPINES' external debt service burden rose to nearly $5 billion at end-April due to higher amortization payments, preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed.

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Preliminary data from the central bank showed debt servicing on external borrowings went up by 1.3% to $4.91 billion in the January-April period from $4.85 billion a year ago.

Broken down, amortization payments increased by 6.2% to $2.42 billion in the first four months from $2.28 billion in the same period in 2024.

On the other hand, interest payments declined by 3% year on year to $2.49 billion from $2.57 billion.

The debt service burden represents principal and interest payments after rescheduling, according to the BSP.

This includes principal and interest payments on fixed mediumand long-term credits, including International Monetary Fund credits, loans covered by the Paris Club and commercial banks' rescheduling, and New Money Facilities.

It also covers interest payments on fixed and revolving short-term liabilities of banks and nonbanks.