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On July 3, 1993, the Bangko Sentral ng Pilipinas (BSP)
was re-chartered as the country’s central bank, following the New
Central Bank Act of 1993. Now already celebrating its 15th
anniversary, BSP has proven to the public its tenacity in fulfilling
its commitment to promote and maintain price stability.
Headed by Governor Amando M.
Tetangco, Jr., BSP has been consistently proactive in providing
leadership to bring about a strong financial system, conducive to a
balanced and sustainable growth of the economy. Moreover, BSP aims
to be a world-class monetary authority and a catalyst for a globally
competitive economy and financial system that delivers a high
quality of life for all Filipinos.
Recently, BSP has yet again
proven its strength in leading the local banking network with
another good news, just in time for its 15th year.
As of the end of the first
quarter of this year, outstanding Philippine external debt approved
and/or registered by BSP stood at US$54.6 billion, slightly lower
than the end-2007 level of US$54.9 billion but higher than the US$54
billion recorded a year ago as of end-March 2007.
Major external debt ratios of the
country continued to improve during the first quarter of 2008. The
external debt ratio, or total outstanding debt as a percentage of
aggregate output or GNP (based on annual/annualized GNP/GDP),
declined to 32.4 percent, from 35.0 percent in 2007 and 40.8 percent
in March 2007.
In terms of GDP1, the external
debt ratio also improved to 35.5 percent, from 38.1 percent in 2007
and 44.2 percent in March 2007. The declining ratio indicates the
country’s improving capacity to service its maturing foreign
obligations.
The external debt service ratio (DSR)
or the percentage of total principal and interest payments to total
exports of goods and receipts from services and income was estimated
at 11 percent during the first quarter of 2008, down from 12.5
percent during the same period last year. The DSR has remained
well below the 20 to 25 percent international benchmark, indicating
that the country has sufficient foreign exchange earnings to service
maturing principal and interest payments during the current period.
Gross international reserves (GIR),
which continued to reach peak levels, stood at US$36.6 billion as of
end-March 2008. The amount is equivalent to 5.5 times (from 4.8
times as of end-2007) the level of short-term debt based on the
original maturity concept and 3.4 times (from 2.9 times) the level
of short-term debt based on the remaining maturity concept.
Short-term accounts under the
remaining maturity concept include obligations with original
maturities of one year or less plus amortizations on medium and
long-term accounts falling due within the next 12 months, i.e., from
April 2008 to March 2009. Even with the lower GIR of US$36.2 billion
as of end-May 2008, the same ratios will remain at comfortable
levels of 5.4 times and 3.4 times, respectively.
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