PH’s external accountability improves in the second quarter – BSP – Manila Bulletin

The central bank said on Tuesday that the country’s external exposure has improved in the second quarter of this year, down to P670.5 billion compared to P1.8 trillion in the same period in 2019.

The Bangko Sentral ng Pilipinas (BSP) said in a statement that the net external liability position “decreased substantially” by 62.3 percent, as external financial assets increased while liabilities decreased.

“This improvement in the country’s net debtor position vis-à-vis the rest of the world (ROW) is attributed to the 7.4 percent increase in the foreign financial assets of the national economy to P10.4 trillion together with the 3.4 percent contraction in its external financial liabilities at P11.1 trillion, ”said the BSP.

In its Philippines Balance Sheet Focus (BSA) report for the second quarter, which the BSP explained as the country’s sectoral accounts on the basis of who to whom (WTW), the net financial asset position increased with the household sector (H H). reporting P9 trillion, an increase of 19.7 percent year on year from P7.5 trillion.

The financial assets were deposits in other depository companies (ODC), as well as shares and participations in investment funds and insurance, pensions and standardized guarantee schemes with other financial companies (OFC), reported the BSP.

ODCs reported P1.7 trillion during the period, an increase of 38.3 percent year-on-year, and these are mainly cash and deposits from the Central Bank (BC). The net financial asset position of OFCs and CBs decreased by 56.7 percent and 6.74 percent to P292.3 billion and P598.6 billion.

The BSP said that the non-financial corporations (NFC) and general government (GG) sectors remained net debtors at P7.2 trillion and P5.1 trillion, respectively. NFC’s net liability position declined 10.1 percent year-on-year, while GG’s increased 31.7 percent due to increased issuance of government securities and loans to finance the fight against the COVID-19 pandemic. .

The BSA report also included a report on the country’s gross financial asset position and gross liability position.

In the second quarter, the BSP said that the total financial assets of the national economy increased 11.4 percent year-on-year to P61.3 trillion and these are cash and deposits, loans and debt securities.

ODCs represented P19.9 trillion of financial claims that were primarily loans, extended primarily to NFC at P8.7 trillion and HH at P13.9 trillion, and deposits in BSP facilities. OFCs’ financial assets of P8.1 trillion are invested primarily in stocks and shares of mutual funds. CB’s financial assets stood at P6.2 trillion, while GG stood at P4.5 trillion.

The BSA also noted that the financial liabilities of the national economy expanded by 9.1 percent to P62 trillion with the liabilities of the ODCs – about 30 percent of the total liabilities of the national economy – at P18.2 trillion. .

The liabilities of the NFCs were P15.9 trillion, while the financial obligations of GG increased to P9.6 trillion and those of the OFCs by P7.8 trillion. Central bank liabilities also grew to P5.6 trillion in the second quarter, while HHs had P5 trillion.