PH external debt service down 21% to $10.08 billion

The Philippines' external debt service burden decreased by 21.16 percent to $10.08 billion from January to September, compared to $12.785 billion in the same period last year.

This reduction was primarily driven by a 39.05 percent decrease in principal payments, amounting to $4.168 billion, and a slight 0.59 percent dip in interest payments to $5.912 billion.

The Bangko Sentral ng Pilipinas (BSP) reported these preliminary data, indicating a fourth consecutive month of annual decline in the country's external debt service.

Economists suggest that reduced maturities of long-term external debts and the US Federal Reserve's rate cuts have contributed to lower principal and interest payments, respectively.