LOOK: PH Foreign Debt Drops $3.82 Billion in the Q1 of 2017 Under Duterte Admin

Under Duterte administration foreign debt stock fell by $3.82 billion in the first quarter of 2017 from a year earlier due to principal repayments, adjustments made to the comparative periods to include late reports, and foreign exchange revaluation, central bank data showed over the weekend.

According to Bangko Sentral ng Pilipinas The outstanding Philippine external debt as of end-March 2017 stood at $73.8 billion, down from $77.64 billion recorded in the first three months of 2016 and down from $74.8 billion at end-December.

The Bangko Sentral ng Pilipinas also reported the year-on-year drop in foreign debt was traced to net principal repayments made by both the public and private sectors as of end-March, which reached $2.1 billion; previous periods’ audit adjustments that amounted to a negative $1.5 billion, due to late reporting; and negative foreign exchange revaluation adjustments worth $383 million.

Photo Credit to Manila Times

“The full downward impact of these factors on the debt stock was slightly offset by a modest increase in non-residents’ investments in Philippine debt papers issued offshore ($126 million) during the period,” central bank said.

Explaining the quarter-on-quarter fall, the report said it was due to “prior periods’ adjustments (negative $673 million) due to late reporting of principal payments; transfer of Philippine debt papers from non-residents to residents ($497 million); and net principal repayments of $255 million.”

However, the Philippine central bank also pointed out that the downward month-on-month impact of these developments on the debt stock was offset by the $466 million foreign exchange revaluation adjustments as the Japanese yen strengthened against the US dollar.