Foreign debt drops
Foreign debt in the first half of 2015 year declined $3.6 billion or 4.6 percent to $75 billion from $78.6 billion a year ago, due mainly to negative foreign exchange revaluation adjustments as the US economy continued to recover which boosted the greenback.
Data from the Bangko Sentral ng Pilipinas over the weekend showed the end-June figure was also $321 million or 0.4 percent lower than the end-March 2015 level of $75.3 billion.
“The decline in the debt level was attributed to transfer of Philippine debt papers from non-residents to residents [$1 billion] amid growing concerns on the anticipated interest rate hike by the United States Federal Reserve, and negative foreign exchange revaluation adjustments [$162 million], primarily due to the weakening of the Japanese yen against the US dollar...,” Bangko Sentral Governor Amando Tetangco Jr. said in a statement.
Tetangco, however, said the impact of the developments was partially offset by net availment worth $875 million, mainly by the national government.