Interest payment on foreign debt securities, Philippines

As shown in the table below on Foreign Debt Service of the Philippine Government, foreign debt securities comprise the bulk of the country’s external debt service burden. These are debts with high interest rates and other charges, from 4 to 10.6 percent p.a. or several times larger than the London Inter Bank Offered Rate (LIBOR) of around 1 percent. Here is the interest payment alone for some of those foreign debt securities.

source: DBM, BESF 2012, Table B.22

* Notes:

  1. These foreign debts were meant purely for budgetary support, ie, to finance the budget deficit.
  2. Only loans with more than $50 M in interest payment in 2010 (1st block) and in 2012 (2nd block) are included here.
  3. The Loan Account name indicates (a) amount loan, (b) interest rate and other charges, and (c) year of loan maturity.

These numbers do not look good. Long term loans with high interest rates.



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