MANILA – The Philippines and the United States will sign on Monday a military intelligence-sharing deal, Manila’s defence ministry said, in a further deepening of security ties between the two defence treaty allies.
Visiting U.S. Defense Secretary LLoyd Austin and his Philippine counterpart, Gilberto Teodoro, will sign the agreement, it said.
Called the General Security of Military Information Agreement or GSOMIA, the pact allows both countries to share military information securely.
Security engagements between the United States and the Philippines have deepened under President Joe Biden and Philippine counterpart Ferdinand Marcos Jr, with both leaders keen to counter what they see as China’s aggressive policies in the South China Sea and near Taiwan.
The two countries have a mutual defence treaty dating back to 1951, which could be invoked if either side came under attack, including in the South China Sea.
The Philippines has expressed confidence the alliance will remain strong under incoming U.S. president Donald Trump. — Reuters
Gogolook Philippines representatives, and Asia Pacific College (APC) students and faculty members during the Digital Defender event launch at the APC in Makati City
Gogolook, a global leader in TrustTech, recently introduced its Digital Defender Program at Asia Pacific College (APC) in Makati City.
At the launch, Gogolook Philippines Country Head Mel Migriño emphasized that the program aims to empower students with greater awareness of online safety.
“The Digital Defender Program embodies Gogolook’s commitment to helping Filipinos stay safe online by fostering a culture of vigilance and security,” Ms. Migriño said.
“Through this initiative, we aim to equip every Filipino with the knowledge and tools to recognize potential threats, practice online safety, and create a safer digital environment for all,” she added.
Gogolook is the developer of Whoscall, a global anti-scam app that provides users with top tools and free features to help them avoid online scams.
The initiative is founded on three key pillars: education, collaboration, and empowerment.
It provides comprehensive knowledge on current scam trends, cybersecurity best practices, and digital safety resources; promotes a community where everyone is encouraged to stay informed and support each other as advocates for secure digital practices; and supplies participants with tools, resources, and incentives to underscore the benefits of a safe digital world.
APC President Tata Medado expressed gratitude to Gogolook for choosing APC as the launch venue.
“This initiative is just one aspect of the partnership between Gogolook and APC, and we look forward to more programs in the future,” Ms. Medado said.
The mechanics and rewards system of the program was presented by Gabe Barrios, Gogolook Philippines Marketing Head, which aims to entice more students to join the Digital Defender Program as an avenue to extend the reach towards digital safety through gamification.
Additionally, Ms. Migriño highlighted exclusive program benefits, including six months of Whoscall Premium Basic.
“On top of Whoscall’s powerful free features, Whoscall Premium Basic offers an Auto Scam/Spam Call Blocker, Auto Database Updates, and an Auto SMS URL Scanner,” she explained.
Whoscall app experience
Gieo Marck Endaya Santos, a multimedia arts student at APC, shared his experience as a victim of a fake delivery scam. He expressed his gratitude for the partnership between Gogolook and APC, saying it made him aware of Whoscall, which now helps protect him from being scammed online.
“At first, I was surprised when I heard about Whoscall’s features because I hadn’t come across any app with capabilities like this — something that could actually protect me from online scams,” Mr. Santos said.
“I’m really glad we’re partnering with Whoscall. The best part isn’t just responding after something happens; it’s about preventing the scam from happening in the first place,” he added, praising the Gogolook-APC partnership.
Meanwhile, Riana Beduya, an architecture student at APC, shared, “Whoscall really helps keep us safe from these types of scams, especially the ones that seem so convincing. Many people fall for scams like that.”
“Extending this protection to my family and friends is a big step for our safety because it safeguards our personal information, bank accounts, and everything else that keeps us secure,” Ms. Beduya added.
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At the Christmas Tree Lighting ceremony are Okada Manila's top executives joined by special guests (from left): Alvaro Ramos, Assistant Vice President - Retail; Wendy Ni - Vice President, Strategic Marketing & Business Planning, Analytics; Department of Tourism Assistant Secretary Sharlene Batin; Robert Scott, Vice President - Hotel Operations;
Mayose Gozon-Bautista, Chief Executive Officer - Cut Unlimited, Inc. ; Reddy Leong, Vice President - Corporate
Marketing & Communications; and Andreas Balla, Vice President - Food and Beverage Division.
Okada Manila officially welcomed the most magical holiday season with the grand lighting of its iconic Christmas Tree, marking the official start of the holiday season.
The Forbes 5-star integrated resort has transformed into a breathtaking winter wonderland for the holidays. At the heart of the celebration is a towering, 34-foot Christmas tree adorned in elegant blue and white ornaments, revolving amidst a glow of shimmering lights and delicate details that embody this year’s “Enchanting Crystal Winter” theme.
The tree lighting ceremony was led by key Okada Manila executives, setting the festive spirit in motion.
Okada Manila officially welcomed the most magical holiday season with the grand lighting of its iconic 34-foot Christmas Tree.
Mesmerizing Performances
To add to the fanfare, the celebration included spectacular performances. Stell of SB19 captivated the crowd with his golden voice and festive classics repertoire, while Acapellago and Manila String Machine gave their own whimsical take on well-loved holiday carols. The Okada Manila Entertainment Group (OMEG) also delighted guests with a spectacular performance of their new show called “Enchant”. Adding to the magical holiday spectacle, the ceremony introduced a new show at The Fountain, Okada Manila’s iconic dancing water display, with a new song “Let It Go.”
Stell of SB19 captivated the crowd with his golden voice and festive classics repertoire.
The Enchanting Christmas Village
Following the tree lighting, Okada Manila unveiled its “Enchanting Christmas Village.” The Crystal Pavilion was turned into a stretch of a dreamy showcase of holiday-inspired immersive booths accentuated with vibrant holiday decors and colorful lights. The Christmas Village will also have dazzling nightly light shows.
The Enchanting Christmas Village is open to the public. This holiday shopping haven is highlighted by the Noel Bazaar from Nov. 15 to 17. The bazaar is known for its vast array of unique finds—a perfect place to buy gifts for friends and loved ones. This year’s festivities are hosted by Kapuso star Sanya Lopez. After the Noel Bazaar, the Enchanting Christmas Market will be open from Nov. 19 to Jan. 5.
The Enchanting Christmas Village is a shopping haven, a perfect place to buy holiday gifts.
Another highlight of the Christmas Village is the Okada Green Heart (OGH) booth, which showcases the property’s Environmental, Social, and Governance (ESG) initiatives. The booth also features local makers and sustainable businesses. The project will have its first run on Nov. 15 to Dec. 1, and will be back in the latter part of December.
For families and holiday enthusiasts, Santa Claus awaits at Okada Manila. Meet and Greet sessions with Santa will take place on select dates, giving kids a chance to share their holiday wishes in person.
Festive Offers for All
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The Okada Manila Entertainment Group (OMEG) also delighted guests with a spectacular performance of their new show called “Enchant."
The Okada Manila Entertainment Group (OMEG) wows the crowd with their synchronized performance with the new Fountain Show song "Let It Go."
Okada Manila’s holiday season promises unforgettable experiences with an array of special offers designed to bring the magic of the season to life.
The Enchanting Winter Escape Package transforms family getaways into cozy holiday adventures with premium accommodations, exclusive Executive Lounge access, and complimentary experiences for each family member.
For a tropical twist, guests can enjoy the Beach Club Daycation at Cove Manila. This daycation includes a sumptuous menu, live entertainment, and a breezy holiday ambiance — perfect for a unique escape.
Kids and families can also enjoy PLAY’s Enchanting Holiday Adventures, featuring seasonal activities and wonderful surprises to create joyful memories together.
Guests can indulge in culinary delights across Okada Manila’s dining venues. From appetizing bites at The Lobby Lounge and Pastry Shop to traditional Italian holiday flavors at La Piazza, the resort’s Merry Feasts, Enchanting Flavors menu offerings are designed to satisfy every palate.
Okada Manila, a Forbes 5-star destination in the Philippines, seamlessly blends unmatched hospitality, gaming, and entertainment across 30 breathtaking hectares. Known for its unique service philosophy, Okada Manila combines the warmth of Filipino hospitality with the precision of Japanese excellence, ensuring every guest feels truly special.
Guests can marvel at The Fountain, a world-renowned water choreography masterpiece, or enjoy the expansive gaming floor — the largest in the Philippines — featuring a wide array of table games and electronic gaming machines. Exclusive clubs like Perlas, Maharlika, and the VIP Club offer elite gaming experiences for discerning guests.
For families, PLAY and Thrillscape provide exciting and engaging entertainment options designed to cater to both developmental and recreational needs. The Sole Retreat and the Forbes 5-star-rated The Retreat Spa offer sanctuaries promoting wellness and relaxation. Culinary delights await at over 40 dining venues, and a variety of shopping options ensure convenience and a premium experience at your fingertips.
Business travelers will find state-of-the-art facilities for meetings, incentives, conferences, and exhibitions (MICE), offering well-appointed spaces equipped with the latest technology. Cove Manila, a world-class indoor beach club, serves as an exclusive venue for private events and daycations, providing a stunning backdrop for special occasions under a UV-protected dome. The Okada Manila Entertainment Group (OMEG) brings world-class performances to life, enriching the vibrant entertainment landscape.
Guests can stay in one of 1,001 accommodations, each designed for comfort and sophistication. Digital innovations, including the Okada Online Casino and the Okada Manila App, make it easier than ever to enjoy the offerings.
Okada Manila is the ultimate destination for leisure and entertainment. Visit www.okadamanila.com to explore.
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Pag-IBIG Fund officially launched the Pag-IBIG Acquired Assets Online Public Auction (OPA) on Nov. 15, which allows homebuyers to conveniently select from Pag-IBIG Fund’s properties for sale and submit their bids using an online platform, Pag-IBIG Fund’s top officials announced on Nov. 15.
Using any device with an internet connection, homebuyers can register for their permanent Buyer ID and explore available properties — all without needing to visit a Pag-IBIG branch. The “Add to Cart” feature also allows them to submit their bids on multiple properties with just one click.
“The OPA is Pag-IBIG Fund’s response to the government’s call to be innovative in the approach to making homeownership more accessible to Filipino workers. Through this new platform, we hope to make the process of buying Pag-IBIG Fund’s acquired assets convenient and more accessible,” said Secretary Jose Rizalino L. Acuzar, who heads the Department of Human Settlements and Urban Development (DHSUD) and the 11-member Pag-IBIG Fund Board of Trustees.
Pag-IBIG Fund Chief Executive Officer Marilene Acosta, who led the launch, emphasized the Fund’s commitment to digitalization and capitalizing on technology for improved service offerings.
“We are in the digital age. The OPA is part of our continued commitment to harness technology, with the ultimate objective of helping the Filipino worker achieve their dream of homeownership,” Ms. Acosta said.
Those who wish to bid manually can still do so until Dec. 31, 2024. Full implementation of the OPA will be effective Jan. 1, 2025 for First (1st) and Second (2nd) Public Auction, while OPA for negotiated sale will be rolled out within November this year.
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One person has died and at least 39 others made ill by E. coli infections linked to fresh carrots sold by several large grocery retailers in 18 states, the U.S. Centers for Disease Control and Prevention said on Sunday.
The CDC said in a statement that the infections are linked to whole bagged carrots and baby carrots sold by Grimmway Farms in California. Walmart, Target, Kroger, Whole Foods and Trader Joe’s, among other stores, retail the carrots under a variety of brand names.
The carrots are unlikely to still be on store shelves, the CDC said, but may still be in consumers’ homes and should be thrown away.
The U.S. Food and Drug Administration said on Saturday that Grimmway Farms had issued a voluntary recall of the carrots, which were also shipped to stores in Canada and Puerto Rico.
The recalled whole carrots had best-if-used-by dates ranging from Aug. 14 through Oct. 23. The recalled baby carrots had dates from Sept. 11 through Nov. 12.
Grimmway, based in Bakersfield, California, said in a Saturday press release that the company is reviewing its growing, harvesting and processing practices, and that it is working with suppliers and health authorities on the matter.
According to media reports, the previously family owned company was sold to private equity firm Teays River Investments in 2020. – Reuters
SEOUL – North Korean leader Kim Jong Un urged the country’s military to improve capabilities for fighting a war in a speech last week, state media KCNA said on Monday, after Pyongyang dispatched thousands of troops to Russia.
Mr. Kim delivered the speech to a conference of battalion commanders and political instructors held in Pyongyang on Friday, during which he called for building political and military strength and fighting efficiency to ensure that the armed forces can cope with a war.
Threats from the United States and its allies including South Korea and their military confrontation with North Korea have brought tension to “the worst phase in history,” he said, calling the Korean peninsula “the world’s biggest hotspot.”
“He ardently called upon all the participants to go all out for bringing about substantial and fundamental improvement in improving their capabilities for fighting an actual war,” KCNA said.
The report came amid international criticism over rapidly developing military cooperation between North Korea and Russia.
Washington, Seoul and Kyiv have said there are more than 10,000 North Korean soldiers in Russia to support its war against Ukraine, and some of them have engaged in combat in Kursk, near the Ukraine border.
KCNA said a workshop was given for military officers over the weekend as part of the conference, which was aimed at strengthening the battalions, bolstering their fighting efficiency and “rounding off war preparations as required by the prevailing situation and modern warfare.”
In a separate dispatch, KCNA said a Russian delegation led by National Resources and Ecology Minister Alexander Kozlov arrived in Pyongyang on Sunday for trade and economy talks.
Last week, Kim guided a test of suicide drones and ordered their mass production, citing an intensifying competition for adopting such weapons around the world.
U.S. President Joe Biden, South Korean President Yoon Suk Yeol and Japanese Prime Minister Shigeru Ishiba condemned North Korea and Russia’s decision to “dangerously expand” the Ukraine war as they held a summit on the sidelines of the Asia-Pacific Economic Cooperation (APEC) Summit in Peru.
Mr. Biden’s administration has allowed Ukraine to use U.S.-made weapons to strike deep into Russia, sources told Reuters, marking a significant policy reversal and a response to Russia’s deployment of North Korean ground troops.
Ukrainian President Volodymyr Zelenskiy has said that North Korean troops had suffered casualties in combat with his country’s forces, and the first battles between them “open a new page in instability.” – Reuters
WASHINGTON – President-elect Donald Trump will tap Brendan Carr, a critic of the Biden administration’s telecom policies and Big Tech, as chairman of the Federal Communications Commission, he said in a statement on Sunday.
Mr. Carr, 45, is currently the top Republican on the FCC, the independent agency that regulates telecommunications.
Last week, Mr. Carr wrote to Meta’s Facebook, Alphabet’s Google, Apple and Microsoft saying they had taken steps to censor Americans. Mr. Carr said on Sunday the FCC must “restore free speech rights for everyday Americans.”
The president-elect has scorned actions by Disney’s, Comcast’s NBC and Paramount Global’s and suggested they could lose their FCC licenses for various actions. Mr. Trump also sued CBS over its “60 Minutes” interview with Vice President Kamala Harris.
Mr. Carr criticized NBC for letting Ms. Harris appear on “Saturday Night Live” just before the election.
Mr. Trump in his first term called on the FCC to revoke broadcast licenses, prompting then FCC Chair Ajit Pai to reject the idea, saying “the FCC does not have the authority to revoke a license of a broadcast station based on the content.”
The FCC issues eight-year licenses to individual broadcast stations, not to broadcast networks.
In 2022, Mr. Carr, a strong critic of China, became the first FCC commissioner to visit Taiwan. He has been an advocate of the FCC’s hard line on Chinese telecom companies.
Mr. Trump nominated Mr. Carr to the FCC during in his first administration in January, 2017, after he had served as the FCC’s general counsel.
The incoming administration will need to nominate a Republican to fill a seat on the five-member commission before it can take full control of the agency.
Mr. Carr “is a warrior for Free Speech, and has fought against the regulatory Lawfare that has stifled Americans’ Freedoms, and held back our Economy,” Mr. Trump said in a statement.
The Republic of Sudan as seen in a screenshot from Google Maps.
LONDON – Britain will seek backing from other United Nations Security Council members on Monday for its demand that Sudan’s warring parties stop hostilities and allow deliveries of aid, the British foreign ministry said.
With London holding the rotating presidency of the council, British foreign minister David Lammy is due to chair a vote on a UK/Sierra Leone-proposed draft resolution, which also calls for the protection of civilians.
Mr. Lammy will say “the UK will never let Sudan be forgotten” and announce a doubling of Britain’s aid to 226 million pounds ($285 million), according to a statement from his ministry.
A power struggle between the Sudanese army and the paramilitary Rapid Support Forces broke out in April 2023 ahead of a planned transition to civilian rule, killing thousands and triggering the world’s largest displacement crisis.
The ministry said Lammy would also criticize restrictions by Israel on humanitarian aid in Gaza and call for an immediate ceasefire along with the release of all hostages.
On the war in Ukraine, he was due to say that Britain “will keep standing with Ukraine until reality dawns in Moscow”. He was due to speak to media with Ukrainian Foreign Minister Andrii Sybiha. – Reuters
BEIJING – Chinese President Xi Jinping arrived in Rio de Janeiro on Sunday to attend the G20 summit and is set to have in-depth talks with Brazilian President Luiz Inacio Lula da Silva, Chinese state media reported on Monday.
In a statement, Mr. Xi said he looks forward to having an exchange of views with the Brazilian president on further enhancing relations between the two countries, Xinhua news reported.
Mr. Xi said the two leaders will talk about promoting development strategies between China and Brazil, as well as discuss international and regional issues, the statement said.
Noting that he has visited Brazil four times and witnessed the development and changes in the country over the past 30 years, Mr. Xi said he feels very close to Brazil.
Brazil and China, which are celebrating 50 years of diplomatic relations this year, are both members of the BRICS group of major emerging economies.
China is Brazil’s largest export market, and China’s trade with Brazil rose 9.9% in the first 10 months of 2024 from the same period last year, according to Xinhua.
This is Mr. Xi’s second visit to Brazil in five years, China’s foreign ministry had previously said, as the countries forge stronger economic ties in various key sectors. – Reuters
THE ENHANCED PESO interest rate swap market is set to open on Monday (Nov. 18), a move the Bangko Sentral ng Pilipinas (BSP) said will mark a “significant step toward boosting trading and liquidity in the domestic bond market.”
The Bankers Association of the Philippines (BAP) in a statement said it is launching the peso interest rate swap (IRS) market, following the release of the updated International Swaps and Derivatives Association (ISDA) on Nov. 15.
The Philippine Overnight Reference Rate (ORR) was included in the rates published by the ISDA.
“The enhanced peso IRS market aims to promote development of yield curves to further support the pricing requirements of short-term credit instruments, such as loans, in the market,” BAP Open Market Committee Chairman Paul Raymond A. Favila said in a statement.
The BAP had developed the Philippine ORR, which is based on the BSP variable overnight repurchase rate.
The BSP said in a statement on Sunday that the IRS market will deepen the local capital markets, which would enhance savings and investments as well as strengthen the transmission of monetary policy.
“We are excited for PESO IRS to go live to help boost transactions, create a benchmark yield curve, and deepen our capital markets,” BSP Governor Eli M. Remolona, Jr. said.
“A benchmark curve will help banks and other lenders price loans at various maturities. This whole effort is just one of many steps the National Government, the BSP, and Philippine and foreign banks are working on very closely together to achieve these objectives. Foremost among these is to provide the liquidity investors need to invest in our fast-growing economy.”
Sixteen BAP member banks will serve as market makers that will quote two-way prices for the short- and long-term swaps against the Philippine ORR.
These are BDO Unibank, Inc.; Bank of the Philippine Islands; China Banking Corp.; EastWest Bank Corp.; Metropolitan Bank & Trust Co.; Philippine National Bank; Security Bank Corp.; Rizal Commercial Banking Corp.; Union Bank of the Philippines, Inc.; Australia and New Zealand Banking Group; Citi; Deutsche Bank; HSBC; ING Bank; JPMorgan Chase; and Standard Chartered Bank.
“(The banks) will ensure there will be prices for swaps of various maturities, from one-month to 10-year, providing a new way to hedge or take positions,” the BSP said.
Five banks will also serve as regular participants: BDO Private Bank, Maybank, Mizuho, MUFG, and SMBC.
Bloomberg will serve as the trading platform for the swap market, while the BSP will be the publisher of the daily variable reverse repurchase rate benchmark.
“Now that the enhanced PESO IRS market has gone live, it is time to work together and ensure that the reforms we have pursued will fulfill their goals,” BAP President Jose Teodoro K. Limcaoco said.
“The launch of the enhanced PESO IRS market, together with the creation of a repo market for government securities, are valuable steps towards growing our Philippine capital market,” he added.
Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said in a Viber message that the Peso IRS market will offer the investing public more hedging products and solutions, which would help develop the country’s markets.
“This would allow businesses, institutions, and individuals to better manage and hedge their interest rate risks to better adapt to global and market developments, at least mitigate the market risks, or could even become lucrative/profitable with the right market view,” he said.
“The investing public would be able to take positions in either a declining or even rising US and local interest rate environment, based on the cycles of the economy and monetary policy,” he added.
Meanwhile, the BSP said it is working on adopting Gobal Master Repurchase Agreement (GMRA) contracts, “allowing it to actually deliver Treasury bonds to banks when they enter into repos as part of monetary policy operations.”
“This is expected to boost the government securities repo market, currently mostly interbank, as banks gain access to BSP’s Treasuries, which they can repo as well for added profit. As the BSP’s shift introduces some banks to GMRA, they may start engaging in other repo transactions as well,” it said.
An expanded repo market will offer a “strong alternative benchmark” alongside the PESO IRS. — Aaron Michael C. Sy
A worker counts US dollar bills and Philippine pesos inside a money changer in Manila. — REUTERS
By Luisa Maria Jacinta C. Jocson, Reporter
THE PHILIPPINES is expected to finally exit the Financial Action Task Force’s (FATF) “gray list” by February, the Anti-Money Laundering Council (AMLC) said, but continued reforms will be crucial to ensure the country stays out of the dirty money watchlist.
“It’s very seldom that the FATF doesn’t grant an exit from the gray list after the onsite (visit),” AMLC Executive Director Matthew M. David said at an SGV & Co. forum on Friday.
“We are very positive that we will be able to exit because we have already shown (progress). That’s why I always say that we have to sustain. We still have to sustain what we did before and continue doing that until the next mutual evaluation.”
At its October plenary, the FATF kept the Philippines in its list of jurisdictions under increased monitoring for “dirty money” risks. The country has been on the list for over three years or since June 2021.
However, the FATF said it initially determined that the Philippines has “substantially completed” the recommended action items to improve its anti-money laundering and counter financing of terrorism (AML/CFT) regime.
The dirty money watchdog is set to conduct an onsite assessment to verify the country’s progress and sustainability of AML/CFT reforms.
This visit will likely take place early next year, before the FATF’s next plenary meeting in February.
Mr. David said that the Philippines will find out by February if it will be able to exit the list.
“Yes, we’ll find out. The same process, they will issue a public statement that they will upload on the FATF website,” he told BusinessWorld on the sidelines of the event.
The AMLC is also in the process of submitting a consolidated progress report to the FATF this month. Mr. David said they are “optimistic” about the progress made so far.
“What we will show in the report is that indeed we have evidence to back up our claims that we have complied with the 18 recommended action plan items,” he added.
At its June update, the FATF said the country needed to address three remaining deficiencies of 18 recommended action items.
These include “demonstrating that supervisors are using AML/CFT controls to mitigate risks associated with casino junkets; applying cross-border measures to all main sea/airports including detection of false declarations of currency and confiscation action in line with risk; and demonstrating an increase in the prosecution of TF (terrorism financing) cases in line with risk,” according to the FATF.
Mr. David said that failure to address the remaining action plans would have put the Philippines at risk of being placed on the blacklist.
“The longer we are in the gray list, the bigger the possibility that we will enter the blacklist,” he added.
Even though the country is expected to soon exit the gray list, there is still work to be done in order to sustain the progress made so far, Mr. David said.
“We intend to continue that to prove sustainability, because sustainability is very important to FATF… We must show that all these recommended action plan items are being sustained. We are sustaining our measures, our accomplishments,” he said.
“You still continue filing cases and we intend to do that. We will be filing cases for money laundering and terrorism financing until December, until January and thereafter.”
Mr. David said the AMLC will also continue to enhance the country’s AML/CFT regime by amending regulations and issuing new policies related to law enforcement for money laundering and terrorism financing, among others.
The AMLC is also seeking to make certain amendments to the Anti-Money Laundering Act, he added.
In 2002, the FATF blacklisted the Philippines for having no legal anti-money laundering framework. It was removed from the blacklist a year later after the passage of the Anti-Money Laundering Act.
THE PHILIPPINES’ external debt service burden fell at the end of August as principal payments declined, preliminary data from the central bank showed.
Data from the Bangko Sentral ng Pilipinas (BSP) showed debt servicing on external borrowings dropped by 3.8% to $8.68 billion in the January-to-August period from $9.023 billion a year ago.
Broken down, principal payments fell by 23.3% year on year to $3.461 billion from $4.511 billion.
On the other hand, interest payments rose by 15.6% to $5.218 billion in the first eight months from $4.512 billion.
“The decline in external debt may fundamentally reflect the net payment of maturing foreign debt and less availment of new US dollar and other foreign currency borrowings,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
He noted this was likely a “matter of prudence” by the government to prioritize domestic borrowings in order to mitigate foreign currency risk.
The peso strengthened to P56.111 per dollar at end-August from its finish of P58.365 at end-July.
“However, it is also a delicate balance in ensuring diversified borrowings, not just solely concentrated on domestic borrowings, that could still include some foreign borrowings,” Mr. Ricafort added.
“Foreign borrowings could also be managed properly with the right foreign exchange view based on market and economic cycles, such as whenever the US dollar corrects lower versus major global currencies amid Fed rate-cutting cycles.”
Finance Secretary Ralph G. Recto earlier said the National Government is aiming to lower the share of external borrowings in its borrowing program.
The government’s borrowing mix is at 75:25 this year, in favor of domestic sources. Next year, the mix will be adjusted to 80:20, in favor of domestic borrowings.
John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, likewise said the decline in debt payments was due to a “more manageable burden of principal and interest payments relative to the country’s export earnings and income from services.”
“This suggests that the Philippines has been strategically managing its external debt portfolio to optimize repayment schedules and reduce near-term pressures,” he said in a Viber message.
Latest data from the BSP showed that the debt service burden as a share of gross domestic product (GDP) stood at 3.2% in the second quarter. This was lower than 3.6% a year earlier.
Earlier data from the central bank showed outstanding external debt hit a record $130.182 billion at the end of June. Broken down, this was composed of $79.825 billion in public debt and $50.357 billion in private debt.
This brought the external debt-to-GDP ratio to 28.9% at end-June.
The BSP’s external debt data cover borrowings of Philippine residents from nonresident creditors, regardless of sector, maturity, creditor type, debt instruments or currency denomination.
