PH external debt service drops 6.2% to $6.72 billion in H1

The Philippines' external debt service burden decreased by 6.2 percent to $6.72 billion in the first half of the year compared to the same period last year.

This overall reduction was driven by a 0.7 percent dip in interest payments to $3.95 billion and a more significant 13.1 percent decrease in principal payments to $2.77 billion.

The Bangko Sentral ng Pilipinas (BSP) reported that the debt service burden remained manageable, constituting 21.1 percent of export shipments and 8.7 percent of exports of goods, services, and primary income.

Experts attribute the lower debt service burden partly to a reduced reliance on foreign borrowings, which helps in managing foreign exchange risks.

Additionally, a significant portion of the government's external debt consists of long-term borrowings with extended repayment periods.