The country’s external debt increased by 15.2 percent or $14 billion in the nine months to September to $105.93 billion as the government ramped up borrowings overseas to fund its coronavirus response.
BSP Governor Benjamin E. Diokno said the Philippines’ outstanding external debt remained at prudent level as the GDP ratio of 27.3 percent is still one of the lowest in the region.
The debt service ratio (DSR), which indicates whether the country’s foreign exchange earnings are enough to meet maturing loans, stood at 8.1 percent, driven by higher payments.
But, while the GDP ratio of 27.3 percent is higher than same period in 2020 of 25.3 percent, Diokno said it reflects the country’s “sustained strong position to service foreign borrowings in the medium to long-term.”
Of the total external debt, $65.2 billion comprised borrowings from the public sector.
