PH foreign debt rose to $ 106.4

Philippines’ unpaid debt rose from $ 98.49 billion in 2021 to 8.1 percent in 2021 or $ 7.94 billion to $ 106.43 billion.

According to the Banco Central Central Philippine (BSP) report, the outstanding year-on-year increase is due to $ 9.8-billion net profit, mainly from the National Government (NG) and $ 3.8 billion in the past.

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“These offshore bonds are partially offset by a $ 3.7 billion resident investment and a $ 2 billion negative FX amendment compared to other currencies such as the Japanese yen and euro,” he said. BSP

By the end of September 2021, it was 0.5 percent higher than the $ 105.9 billion, or 499 million dollars, or 0.5 percent higher than the quarter. Net profit was $ 3.4 billion.

“Private banks have borrowed from the coast to invest in high-quality liquid assets, finance their FX business and increase their capital, but interest rates are low,” BSP said. This was partially replaced by the following: transfer of Philippine debt owed to non-residents by $ 2.4 billion; And $ 488 million negative FX review.

Of the $ 106.43 billion in foreign debt last year, the public sector accounted for $ 63.9 billion, or 60 percent of the total. The government sector’s external debt, which ended at the end of December, rose by 5.99 percent to $ 58.12 billion by 2020.

BSP estimates that $ 55.4 billion, or 86.7 percent of government sector debt, is NG loans, while the remaining $ 8.5 billion are state-owned and / or controlled corporations, government financial institutions, and BSP loans.

Meanwhile, private sector debt rose 5.25 percent year-on-year to $ 42.94 billion from $ 40.37 billion in 2020. It accounts for 39.9 percent of the total.

Foreign debt remains 27 percent higher than GDP in 2021 and 2020. According to BSP, the low GDP ratio is still a sign of the country’s strong commitment to sustainable foreign debt. Long-term (MLT).

By the end of 2021, the Debt Service Rate (DSR) has grown from 6.7 percent to 7.2 percent from the highest payments in 2020. The DSR shows the country’s FX eligibility to meet maturity requirements.

Debt service debt, on the other hand, reached $ 8.78 billion in 2021, up 16.6 percent from $ 7.53 billion in 2020. Capital payments fell by a total of $ 6.60 billion, down from $ 4.95 billion by 2020 and interest rates by $ 2.18 billion. $ 2.59 billion.

Outer debt maturity is still “most MLT in nature or original maturity over a year, with a total share of 85.8%.

“This means that the FX requirements for debt payments are still well established and manageable,” BSP reiterated.

The average maturity of the MLT is 17.2 years, and the public sector loan is 20.8 years longer than the private sector 7.2 years. Short-term debt, meanwhile, includes 14.2 percent of debt and bank debt, business credits, and more.

The country’s major lenders are Japan at $ 14.6 billion, the United States at $ 3.8 billion, the United Kingdom at $ 2.8 billion, and the Netherlands at $ 2.8 billion.

Japan is the world’s largest lender with $ 8.7 billion, followed by China with $ 1.5 billion, France with $ 677 million and more.

Mortgage and binary loans accounted for 37.2 percent of total debt, 34.7 percent of bonds and 22.3 percent of foreign banks and other financial institutions.

 

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