Foreign debt inches down to $62.5-B at end-June

MANILA - The Philippines foreign debt fell slightly to US$62.5 billion at end-June this year from $62.9 billion at end-March, the Bangko Sentral ng Pilipinas said on Friday.

In a statement, the BSP said the country brought down its external debt because of the lower borrowings of the private sector and the national government vis-à-vis the loan repayments made. This resulted in net repayments of $850 million.

The country's foreign debt also dipped with the audit adjustments of $116 million, partially offset by the weakening of the US dollar against the yen and the increased investments of foreign nationals in Philippine debt papers reaching $72 million.

Year-on-year, the country's foreign debt stock inched up 1.7 percent due to net availments of $172 million and $1 billion worth of investments by non-residents in Philippine debt papers, indicating strong and sustained investor confidence in the country.

source: interaksyon.com

Private sector prepays 17.7% more foreign debt in 1H

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