The country’s outstanding external debt ballooned to $87.45 billion in the second quarter of the year, accelerating from amounts recorded at end-March and a year earlier, the Bangko Sentral ng Pilipinas (BSP) announced on Friday. Meanwhile, key external debt indicators “remained at prudent levels” in the six-month period, the Bangko Sentral said. As a percentage of annual aggregate output, the external debt ratio (EDT) picked up to 23.7 percent from 21.4 percent a quarter ago as the country’s gross domestic product (GDP) plunged by 16.5 percent, while external debt rose during the reference quarter. “The ratio indicates the country’s sustained strong position to service foreign borrowings in the medium to long-term,” the BSP said. It added that the country’s EDT-to-GDP ratio remained one of the lowest in Southeast Asia.

Source: Manila Times September 18, 2020 16:18 UTC