THE Bangko Sentral ng Pilipinas (BSP) on September 30 released data, based on the preliminary Philippine Balance Sheet Approach in the first quarter (Q1) of 2024, the country’s net external liability position totaled P3 trillion, or 17.1 percent higher than the P2.6 trillion posted in the fourth quarter (Q4) of 2023.
This was due to the higher net external liability positions of nonfinancial corporations and the general government, the BSP said.
Meanwhile, the general government’s net financial liability position grew by 1.6 percent quarter on quarter to P9.90 trillion in Q1 from P9.70 trillion in Q4 of 2023.
The reason was, nonresidents provided additional financing to the general government in the form of loans and debt securities, while the other depository corporations and the other financial corporations expanded their holdings of government securities, the BSP explained.
Nonfinancial corporations’ net financial liability position also increased by 4.9 percent to P9.50 trillion from P9.1 trillion in Q4 of 2023, attributed to the rise in external financing via equity and investment fund shares and loans payable to nonresidents. Also, nonfinancial corporations’ bank deposits declined.
Likewise up was the household sector’s net financial asset position at P13.8 trillion, which is 2.6 percent higher than the P13.4 trillion in Q4 of 2023, due to the increase in households’ bank deposits.
However, other depository corporations’ Q1 2024 net financial asset position decreased by 21.3 percent to P1.40 trillion from P1.80 trillion, due to higher savings and time deposit placements by households.
As for the BSP itself, its net financial asset position expanded by 10.1 percent quarter o quarter to P962.6 billion from P874.1 billion, due to a decline in reverse repurchase agreements owed to the banks and the lowering of currency holdings in households. Similarly, the central bank’s external assets rose during the given period.
Net international investment position
Also on September 30, the BSP disclosed the country’s net international investment position showed a net liability position of $55.20 billion as of end-June 2024, lower by 6.5 percent than the $59.10 billion recorded in end-March 2024. This was due to a 1.7 percent contraction in the country’s external financial liabilities, which was more than the 0.5 percent decrease in external financial assets.
Total outstanding external financial liabilities amounted to $298.70 billion, while total outstanding external financial assets totaled $243.50 billion.
The country’s total stock of external financial liabilities dipped by 1.7 percent as of end-June 2024, which the BSP said was due to the recorded declines in net foreign portfolio investments of equity securities to $34.8 billion (down by 11.3 percent from $39.2 billion) and net foreign direct investment of equity capital to $58.2 billion (down by 6.5 percent from $62.2 billion), on account of downward valuation adjustments.
Meanwhile, the 0.5 percent decline of the country’s total stock of external financial assets as of end-June 2024 were due to the combined decreases in the following: outstanding value of residents’ net portfolio investments in foreign debt securities, down by 6.2 percent to $31.40 billion from $33.40 billion; net direct investments in debt instruments lower by 1.7 percent to $41.9 billion from $42.6 billion and residents’ net placements of foreign currency and deposits in foreign banks which decreased by 3.1 percent to $14.40 billion from $14.90 billion.
Be the first to comment