MANILA - Private sector borrowers with dollar-denominated debt paid down more of their obligations in the first six months of the year, the Bangko Sentral ng Pilipinas said on Wednesday.
According to the BSP, the private sector prepaid $735 million in debts in the January to June period, or 17.7 percent more than a year ago's $628 million.
The prepayment comes at a time when the peso has strengthened, appreciating 0.78 percent vis-a-vis the US dollar in the past month.
Prepayment totaled $1.5 billion last year, down from $4.1 billion in 2010.
The BSP said the country's foreign debt at end-May reached $62.9 billion or lower than foreign exchange reserves of $76.02 billion.
As a percentage of gross domestic product, the country's foreign debt fell to 27.38 percent from last year’s 29.51 percent. The private sector's foreign debt likewise improved to 6.35 percent of GDP at end-May from 7 percent in 2011.
Total debt also dropped to 21.03 percent of GDP from 22.52 percent last year. Consequently, the country's debt service burden fell to $2.69 billion from $3.18 billion a year ago.
source: interaksyon.com
