Hanoi (VNA) - The Philippines' outstanding external debt stood at 72.2 billion USD by the end of June 2018, down by 997 million USD or 1.4 percent from the end of March 2018, the country’s central bank has announced.

Nestor Espenilla, Governor of the Bangko Sentral ng Pilipinas (BSP) – the central bank, said the reduction in the debt stock during the second quarter was mainly driven by negative foreign exchange (FX) revaluation adjustments as the US dollar strengthened against third currencies, particularly the Japanese yen.

In terms of currency mix, Espenilla said the Philippines’ debt stock remained largely denominated in US dollar with 61.5 percent and Japanese yen accounting for 12.9 percent.

He said US dollar-denominated multi-currency loans from the World Bank and Asian Development Bank had a 14.6 percent share to total, while the remaining 11.0 percent balance pertained to 17 other currencies, including the Philippine Peso, Euro and Special Drawing Rights. 

The International Monetary Fund (IMF) forecast that the Philippine economy is likely to maintain its growth rate at 6.7 percent in 2018 and 2019 thanks to strong consumption spending and investment.

However, the IFM also warned the Philippines of increasing short-term risks such as growing inflation, fast credit growth, the US’s higher interest rate, stronger US dollar and the trade war between the US and China.-VNA