The country’s gross international reserves (GIR) went up by $79 million to $16.484 billion as of end-May 2004, from $16.405 billion last month. At this level, GIR was adequate to cover 4.5 months of imports of goods and payments of services and income. This level was also equivalent to 2.9 times the country’s short-term debt based on original maturity and 1.5 times based on residual maturity. Short-term debt based on residual maturity refers to outstanding short-term external debt on original maturity plus principal payments on medium- and long-term loans of the public and private sectors falling due within the next 12 months.
The increase in reserves was attributed to deposits by the National Government (NG) and the National Power Corporation (NPC) to the BSP of proceeds of their bond issues. However, these inflows were partly offset by disbursements to pay for the debt service requirements of both the National Government (NG) and the BSP.
Similarly, the BSP’s net international reserves (BSP-NIR) level rose to $14.153 billion as of end-May 2004, inclusive of revaluation of reserve assets and reserve-related liabilities. The current NIR level was 1.2 percent or $168 million higher compared to $13.985 billion as of end-April 2004.