MANILA, Philippines — Prudent debt management and deleveraging from foreign borrowings by Philippine companies to minimize foreign exchange risks helped trim the country’s external debt in the first half, according to the Bangko Sentral ng Pilipinas. Governor Nestor Espenilla Jr. said the country’s external debt stood at $72.2 billion as of end-June, $294 million lower than the $72.49 billion in the same period last year. Espenilla said the country’s external debt has steadily been declining from $79.95 billion in 2012, $78.49 billion in 2013, $77.67 billion in 2014, $77.47 billion in 2015, $74.76 billion in 2016, and $73.1 billion in 2017 due to prudent debt management and Philippine corporate borrowers’ deleveraging from foreign borrowings in order to minimize foreign exchange risk. Public sector debt reached $38 billion or 52.6 percent of the total debt stock as of end-June, $1.2 billion lower than the end-March level of $39.2 billion due to negative foreign exchange revaluation adjustments, increase in residents’ investments in debt papers issued offshore by the public sector, and net principal repayments. “Private sector foreign borrowings have been declining in recent years which may be attributed to Philippine corporate borrowers’ deleveraging from foreign borrowings in order to minimize foreign exchange risk, among others,” he said.

Source: Philippine Star September 14, 2018 15:56 UTC