The Philippines’ external debt has risen 4.5 percent to $111.268 billion at the end of 2022, due to the impact of a strong US dollar and higher US interest rates.
This marks the second year in a row that the country’s debt stock has exceeded its US dollar reserves maintained by the Bangko Sentral ng Pilipinas.
However, the country’s gross international reserves have climbed to $100.7 billion as the BSP purchased US dollars to replenish reserves, and the National Government raised $3 billion from its first global bond sale to fund budgetary requirements.
The external debt ratio to gross domestic product stands at 27 percent, signalling manageable debt levels, as the country maintains its capability to service foreign borrowings in the medium- and long-term.
Japan remains the country’s biggest creditor with $14.7 billion, followed by the US with $3.5 billion and the UK with $3.2 billion.
