Each Filipino Owes ₱823,876 As National Debt Rises

As of the end of September 2024, the debt of each Filipino amounts to ₱823,876, based on a total external debt of $139.64 billion and a peso-dollar exchange rate of ₱59 to $1, the Bangko Sentral ng Pilipinas (BSP) reported.

Year-on-year, external debt grew by $20.81 billion, or 17.5%, driven by public and private net availments and acquisitions of Philippine debt securities by non-residents.

With a population of 110 million, this marks a 7.3% increase from June 2024, equating to a $9.46 billion rise.

Despite the growth in external debt, the BSP emphasized that the debt ratio remains at a "prudent level," with key indicators showing sustainability.

Gross international reserves (GIR) were at $112.71 billion, offering 3.92 times cover for short-term debt, while the debt service ratio (DSR) increased to 11.6% from 10.4% due to higher payments in 2024.

The rise in external debt stems from public and private sector liquidity needs and increased foreign investments in onshore debt securities.

During the quarter, the National Government (NG) raised $4.17 billion, including $2.5 billion in global bonds, to fund development projects. Private corporations also tapped offshore markets, securing $1.82 billion for expansion.

Year-on-year, external debt grew by $20.81 billion, or 17.5%, driven by public and private net availments and acquisitions of Philippine debt securities by non-residents. As of September, 79.4% of the debt was medium- to long-term (MLT), with $110.87 billion outstanding.

Public sector debt increased by $7.06 billion, reaching $86.88 billion, with 92.2% attributed to the NG. Meanwhile, private sector debt rose by $2.4 billion, reflecting corporate funding needs and offshore acquisitions by non-residents.

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Key creditors include Japan ($15.38 billion), the Netherlands ($4.61 billion), and the United Kingdom ($4.51 billion).

Loans from official sources, bonds, and foreign banks constitute the bulk of the debt, which remains primarily denominated in U.S. dollars (74.5%), followed by the Philippine peso (9.1%) and Japanese yen (7.8%).