PH records a net external liability of $ 21 billion

DECREASING LIABILITIES The Bangko Sentral ng Pilipinas (BSP) building. According to the BSP, the country’s net external liabilities stood at $ 21.1 billion, down 7.3% from the $ 22.7 billion recorded last June. PHOTO BY ENRIQUE AGCAOILI

THE Bangko Sentral ng Pilipinas (BSP) said the country’s international investment position (IIP) stood at $ 21.1 billion in net external liabilities at the end of September of this year.

The current sum is down 7.3% from the $ 22.7 billion announced at the end of June of this year, according to a central bank report released on Thursday.

“This results from the 1.5% increase in the country’s total external financial assets to $ 238.7 billion (from $ 235.3 billion), which more than offset the marginal increase of 0.7 % of the total external financial liabilities of the country to 259.8 billion dollars (against 258.0 billion dollars) at the end of September 2021 ”, he underlined.

During the period under review, external financial commitments were supported by the increase in the stock of other residents’ investments, reserve assets held by the BSP and direct investments.

Meanwhile, the country’s external financial assets soared during the quarter, thanks to a 230.6% increase in the International Monetary Fund’s special drawing rights allocation to the country to $ 4 billion. dollars, and a 5.5% increase in non-resident debt investment. instruments issued by their local subsidiaries, for a total of $ 47.3 billion.

Year over year, the country’s net international investment position has more than doubled from $ 10.3 billion at the end of September 2020, according to Bangko Sentral.

“The higher net international investment position during the period was caused by the 13.1 percent increase in the country’s total external liabilities to $ 229.7 billion. This exceeded the 8.8 percent increase. the stock of external financial assets of $ 219.4 billion, “he continued.

The central bank said the growth of virtually all accounts, especially portfolio investment, direct and otherwise, has contributed to the expansion of the stock of external financial liabilities.

IIP is a statistical statement that shows at a given point in time the value of financial assets of residents of an economy that are claims on non-residents or gold bars held as reserve assets; and the liabilities of residents of 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 to the rest of the world.

Shirlene J. Manley