Increased loan availment particularly a private sector loan of $3 billion raised debts to $4.9 billion last December to push up external obligations last year to a total of $125.4 billion, an increase of 5.5 percent from a year ago, according to the Bangko Sentral ng Pilipinas.

The BSP bared $3 billion in syndicated loans from offshore banks to a non-bank company which needed funds for capital expenditures and maturing obligations was included in the December figures.

The central bank, nonetheless, did not name the company that obtained the huge credit.

Debt by the end of last year was higher than the $118.8 billion recorded as of end-September 2023, the BSP said.

However, the central bank said the foreign debt level in the last quarter remained “prudent” about the country’s gross domestic product or GDP at 28.7 percent from 29.1 percent in the third quarter.

Meanwhile, the national government also increased borrowings through dollar-denominated Sukuk or Islamic bonds worth $1 billion.

The BSP said the bond proceeds were used to support general financing requirements, infrastructure projects, and social welfare programs.

Revaluation costs $960M

The external debt also reflected the revaluation of borrowings in other currencies, contributing $960 million.

Meanwhile, Philippine debt issued by residents to non-residents added $816 million.