Foreign Debt Payments Halved to $799M

The Philippines' external debt service burden significantly dropped to $799 million in January, nearly half of the $1.75 billion recorded in the same month last year, according to the latest data from the Bangko Sentral ng Pilipinas (BSP).

- By KEISHA TA-ASAN

Of the total, interest payments increased by 3.8 percent to $719 million, while principal payments fell by 92.5 percent to just $79 million from $1.06 billion a year ago.

Michael Ricafort, chief economist at Rizal Commercial Banking Corp. (RCBC), said the sharp decline was "largely attributed to a lower amount of external debt maturity or principal payments at the start of the year, compared to the same month last year."