The country’s total external debt as of March slightly rose by 2.6 percent to $128.7 billion from $125.4 billion recorded as of December last year, a report from the Bangko Sentral ng Pilipinas showed.

The BSP said borrowings by the public and private sectors increased as foreign investors gained confidence in the Philippine economy.

The private sector debt grew by 4.7 percent to $49.8 billion in the first quarter compared with the level in the last quarter of 2023.

Specifically, private banks issued bonds amounting to $1.8 billion, higher by 4.7 percent than the level in 2023. The BSP said the proceeds were used for general corporate expenditures, refinancing of borrowings and liquidity purposes.

Out of the total external debt, the private sector debt made up 38.7 percent which was higher than the 37.9 percent in the fourth quarter of 2023.

Public debt moderates

The public sector debt grew slower by 1.4 percent to $78.9 billion from $77.8 billion.

The bulk of the loans or $72.3 billion was borrowed by the National Government, while the remaining $6.6 billion was lent to government-owned and controlled corporations, government financial institutions, and the BSP.

Out of the total external debt, the public sector debt shrank to 61.3 percent from 62.1 percent.

Major creditor countries were Japan ($15.2 billion), the United Kingdom ($4.6 billion), and the Netherlands ($3.9 billion).

The total loan came mostly in the form of multilateral and bilateral loans with 39.4 percent share and a combined amount of $50.7 billion from foreign governments.

The rest came in the form of bonds or notes with 32.8 percent share, loans from foreign banks (22.1 percent), and loans from suppliers or exporters (5.6 percent).

In terms of currency denominations, the debt consisted mostly of US dollars with 76 percent share and amount of $97.8 billion. It was followed by Japanese yen with $11.1 billion or 8.6 percent share.

Majority of the debt or 86.7 percent had maturities of over a year. These loans amounted to $111.6 billion.