The country’s foreign debt declined 6.7 percent to $72.5 billion as of end-June from $77.7 billion a year ago, on net debt principal repayments by both the public and private sectors, Bangko Sentral ng Pilipinas Deputy Governor Diwa Guinigundo said over the weekend.
Guinigundo said in a statement the decrease was partly brought about by the negative foreign exchange revaluation adjustments of $1.2 billion arising from strengthening of the US dollar against other currencies, particularly the yen and the Philippine peso.
The end-June debt stock was also $1.3 billion or 1.8 percent lower than $73.8 billion recorded as of end-March.
Public sector external debt went down to $37.5 billion (51.7 percent of total debt stock) in the second quarter from $37.7 billion in the first quarter, due to a $122-million decline in non-residents’ investments in public sector debt papers issued offshore and net repayments of $121 million.
Private sector debt similarly dropped to $35 billion (48.3 percent of total) in the second quarter from $36.1 billion in the first quarter.