PH external debt hit $111Bn in 2022
MANILA, PHILIPPINES — The country’s external debt rose by 4.5% to hit a record high of US$111.27 billion in 2022.
According to the Bangko Sentral ng Pilipinas (BSP) Governor Felipe Medalla, the national and private sectors borrowed more from offshore creditors for COVID-19 pandemic recovery measures and to sustain business and commercial activity in the country.
The country’s external debt-to-GDP (gross domestic product) ratio also increased to 27.5% last year.
However, Medalla deemed this figure “manageable” as the Philippines maintained its strong rebound from the pandemic-induced recession, and its GDP accelerated by 7.6% in 2022.
The BSP chief also reported an improvement in the country’s debt service ratio from 7.5% in 2021 to 6.3% in 2022 due to higher receipts and lower repayments.
The Philippines’ major creditor countries include Japan (US$14.7 billion), the United States (US$3.5 billion), and the United Kingdom (US$3.2 billion).
Borrowings from multilateral lending institutions and bilateral creditors have the largest share of 37.9%, followed by bonds or notes loans (33.1%) and obligations to foreign banks and other financial institutions (22.9%).
The remaining 6.1% came from other creditors, such as suppliers and exporters.
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