External debt servicing drops 12.3%

The country’s external debt service burden fell to $3.57 billion as of end-August, down 12.31 percent from the same period last year of $4.07 billion, Bangko Sentral ng Pilipinas (BSP) data show. As of end-August, principal debt service payments dropped by 18.54 percent to $1.83 billion from $2.24 billion same time in 2014. Interest payments also declined by 4.7 percent to $1.74 billion versus $1.83 billion last year. The Central Bank of the Philippines forecast the annual inflation rate could increase in January due to weather-related supply shocks. It expects annual inflation of 3.4-4.3 percent in January. (Photo by Jacqueline Hernandez) The debt service burden represents only principal and interest payments, and does not include those that do not involve actual outflows such as rescheduling or refinancing of existing debt and conversion of debt into equity. The BSP continued to assess that both the public and private sectors have sufficient [...]