Foreign debt payments hit $6.2 billion in 5 months
The country’s foreign debt payments increased by 4.8 percent to $6.21 billion from January to May as higher principal repayments outweighed a decline in interest payments, preliminary data from the Bangko Sentral ng Pilipinas showed.
In the first five months of the year, foreign debt payments in the Philippines rose by 4.8 percent to $6.21 billion, driven by a 13.6 percent increase in principal repayments. This contrasts with a 2.3 percent decline in interest payments, which totaled $3.2 billion. Economists attributed the increase largely to scheduled debt maturities rather than a deterioration in the nation's ability to meet foreign obligations.
The debt service burden, representing principal and interest on foreign obligations, saw a $283 million increase compared to the same period last year. This debt service, equivalent to 21.6 cents for every dollar of merchandise exports, was lower than the 22.4 percent rate from the previous year.
Written by urgent.news from Philippine Star Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
