BSP-Philippines’ net foreign liability position increases to $27.6 billion at end-December 2021
?
This was due to the 3.2% increase in the country’s total external financial liabilities during the quarter, which outpaced the 1.4% growth in total external financial assets. From
The country’s total external financial liabilities rose during the quarter, following increases recorded across all major accounts. In particular, foreign direct investment (FDI) increased by 3.4% for
At the same time, the growth in the country’s total external financial assets is mainly due to the increase in reserve assets and direct investments by residents, in the form of equity and debt instruments.
On an annual basis, the country’s net external debtor position increased by 29.4% compared to
External financial assets
By institutional sector, the BSP continued to hold the largest share of the country’s total external financial assets at 47.2 percent (
By type of instrument, the majority of the stock of foreign financial assets of residents is in the form of reserve assets held by the BSP (45.2%). At the same time, investments in debt securities (or intercompany loans) and in debt securities issued by non-residents represented 15.6% and 13.0% respectively6. The other main financial assets include shareholders’ equity (11.9%), net foreign currency investments and deposits. (6.8%) and loans (5.2%).
External financial liabilities
The other sectors accounted for a large part of the country’s total external financial liabilities with a share of 64.2% or the equivalent of
From
1 The international investment position (IEP) is a statistical statement which indicates at a given time the value of the financial assets of the residents of an economy which are claims on non-residents or gold bullion held as assets reserve and the liabilities of the residents of an economy. an economy to non-residents. The difference between assets and liabilities is the net position in the IIP and represents either a net claim or a net liability vis-à-vis the rest of the world. (Source: Balance of Payments and International Investment Position Manual, 6th edition). The net IIP at the end of the current quarter is calculated as follows: Net IIP at the end of the previous quarter plus net flows of the balance of payments of the current quarter and other variations (for example, market price and exchange rate variations ).
2 Debt securities under the
3 The Central Bank is excluded from the depository corporations sector.
4 The PSEi increased by 169.75 basis points, from 6,952.88 to
5 Other sectors cover the following economic sectors: (a) other financial corporations, which include private and public insurance companies, holding companies, public financial institutions, investment companies, other financial intermediaries except insurance, institutions/trust companies, finance companies, stockbrokers/brokers, investor lender, licensed agent banks (AAB), foreign exchange firms, investment houses, pawnbrokers, card companies credit, offshore banking units (OBU); (b) non-financial corporations, which refer to public and private corporations and quasi-corporations whose main activity is the production of market goods or non-financial services; and (3) households and nonprofit institutions serving households (NPISH).
6 Debt securities under the
View Full Report
Contact information
Address
Contact number
(+632) 8811-1277 (8811-1BSP)
E-mail address
