The country's foreign debt slightly rose by 0.8 percent to $118.8 billion in the first nine months from $117.9 billion recorded in mid-year, the Bangko Sentral ng Pilipinas, or BSP, reported.

The BSP said this was a $915-million increase, driven by prior adjustments to some of the external borrowings worth $2 billion. Nearly all the amount or $1.9 billion was borrowed by non-bank firms.

However, the central bank said the debt burden was slightly higher in the third quarter, resulting in a better external debt ratio of 28.1 percent from 28.5 percent.

Compared to last year, external debt increased by 10.1 percent or $10.9 billion as of end-September due to net availments worth $6 billion. Majority of the loans amounting to $7.8 billion went to government borrowings.

Other growth factors were the inclusion of non-residents' holdings of $3.3 billion peso-denominated debt securities issued onshore in the first quarter, prior adjustments to borrowings worth $1.5 billion, and a $291-million positive foreign exchange revaluation.

Debt sales, minimal impact

"The sale of debt papers issued offshore of $224 million had a minimal offsetting effect on the year-on-year increase of the debt stock," the BSP said.

Specifically in the third quarter, external debt of the public sector declined by $776 million or 1 percent to $73.7 billion compared to the second quarter.

The bulk of the loans or 91 percent was borrowed by the national government, while the rest was lent to government-owned and controlled corporations, government financial institutions, and the BSP.

Meanwhile, external debt of the private sector increased by 3.9 percent to $45.1 billion.

The top lender was Japan with $14.8 billion, followed by the United Kingdom ($4.1 billion), and Singapore ($3.3 billion).

The majority of external debt or 38.3 percent came from official sources consisting of multilateral loans ($32.1 billion) and bilateral loans ($13.4 billion).

They are followed by bonds (32.7 percent), obligations to foreign banks and other financial institutions (22.5 percent), and payments to suppliers or exporters (6.6 percent).

External debt as of end September mostly consisted of 85.6 percent medium to long-term debt with maturity of over one year.