The Philippines’ external debt service burden increased by 14% to $15.74 billion from January to November 2024, up from $13.81 billion in the same period in 2023, according to the Bangko Sentral ng Pilipinas (BSP). The rise was attributed to higher principal and interest payments.
During the 11-month period, principal payments climbed by 12.9% to $8.39 billion from $7.43 billion a year ago. Interest payments also saw a 15.2% increase, reaching $7.35 billion from $6.38 billion in the same period last year.
External debt service burden refers to the country’s obligations to repay foreign loans, including principal and interest. It covers medium and long-term credits, International Monetary Fund (IMF) loans, and obligations under debt rescheduling agreements with commercial banks and the Paris Club.
BSP data also revealed that the country’s total external debt surged to a record high of $139.64 billion as of September 2024, marking a 17.5% increase from $118.83 billion a year earlier. The national government and private sector’s increased borrowings contributed to the rise.
Public sector external debt grew by 8.8% to $86.88 billion in the third quarter, accounting for 62.2% of total foreign debt. Meanwhile, the private sector’s external debt rose by 4.8% to $52.76 billion.
