PH external debt hits record $148.87B in June

The Philippines' outstanding external debt reached a record $148.87 billion by the end of June, a 14.4% increase from $130.318 billion in the same period last year.

The Bangko Sentral ng Pilipinas (BSP) attributes the jump primarily to valuation effects from the weakening US dollar and significant borrowings, including National Government bond issuances and external financing tapped by local banks.

Quarter-on-quarter, the external debt inched up by 1.5% from $146.74 billion at the end of the first quarter.

Despite the increase, the BSP assures the debt level is manageable and sustainable, with the external debt-to-gross domestic product ratio at 31.2%, a slight improvement from the previous quarter but higher than a year ago.

The government and local entities borrow externally to fund infrastructure, social services, and investment initiatives.