PH Debt Increases, BSP Unconcerned

Bangko Sentral ng Pilipinas (BSP) shrugged off a possible downgrade in the investment grade of the country as the national debt greatly increased due to the country’s liability levels remaining within the international threshold.

BSP Governor Benjamin Diokno also added that the country is very careful with the threshold in terms of debt-to-gross domestic product (GDP) ratio. He also noted that the country’s GDP is better than those of other Asian countries.

He further added that the country’s borrowing program is a sustainable one.

“The analysis is that because of the reforms that we have done our borrowing program is sustainable. So, there should be no fear that the rating agencies will downgrade us. In fact, in the sea of downgrades they have affirmed their ratings on the Philippines’ international credit,” Diokno said.

The external liabilities of the Philippines for the year 2020 amounted to USD98.5 billion, which is much higher compared to 2019’s USD83.6 billion.

The added amount in the county’s liabilities is due in part to programs for coronavirus disease 2019 (COVID-19) amelioration programs of the government, coupled with the borrowing of money internationally for the country’s vaccine program. (GFB)