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SOME
$679 million were added to the country’s outstanding
foreign debt in the first three months—even though both
the national government and the Bangko Sentral ng
Pilipinas undertook separate prepayment programs made
possible by copious foreign inflows—to bring the
end-March total to $54 billion.
Central
bank Governor Amando Tetangco Jr. said the increase was
from government borrowings during the quarter when $1.6
billion flowed in from abroad and offset in part the net
repayments made by the private sector.
“Year-on-year the debt stock fell by $1.3 billion or 2.3
percent from the end-March 2006 level of $55.3 billion
mainly due to net principal payments, including
prepayments of $3.1 billion.”
As the
debt rose, the country’s gross international reserves
also rose to $24.7 billion or 4.8 times the level of
short-term debt based on original maturity and 2.4 times
the level of short-term debt based on the remaining
maturity concept.
“Short-term accounts under the remaining maturity
concept include not only loans with original maturities
of one year or less, but also amortizations on medium-
and long-term accounts falling due within the next 12
months,” said Tetangco.
These
are foreign debt maturing between April 2007 and March
2008, according to Tetangco.
Based on
GIR as at end-May, the ratios are 5 times and 2.5 times,
respectively.
The
country’s external debt ratio last year, or the total
principal and interest payments relative to goods
exports and receipts from services and income, has been
whittled down to 12.1 percent from a peak of 17.1
percent in 2002.
External
debt as percent of total output or the gross national
product fell to 40.6 percent of GNP from 41.7 percent of
GNP at end-2006, and from 49.6 percent of GNP at
end-March 2006.
Medium-
and long-term loans still account for the bulk or 90.5
percent of total foreign debt at end-March this year,
with average maturity of 18.1 years or longer than
year-ago equivalent of 17.6 years.
Private-sector foreign debts averaged 9.3 years, but
public-sector foreign debts were more than double at
20.7 year.
Consolidated public-sector foreign debts totaled $38.3
billion or a 3.4-percent increase during the quarter.
Private-sector debt, on the other hand, fell by 3.5
percent to $15.7 billion or 29.1 percent of total debt.
Bilateral creditor sources extended the equivalent of
39.1 percent of the foreign debt pile while foreign
bondholders extended 35.8 percent.
Banks
and other financial institutions supplied 18.5 percent;
and foreign suppliers, the balance of 6.6 percent.
More
than 53 percent of total foreign debt was in US dollars
and 25 percent in Japanese yen. |
