World Bank prods the Philippines to manage debts better

The World Bank has said that the Philippines needs to manage its debts in a more orderly and timely manner. Its delays in addressing sovereign debt distress are associated with protracted recessions, high inflation, and fewer resources going to essential sectors, said the bank. It made the warning as it observes how lower-middle income countries like the Philippines have dramatically increased their levels of sovereign debt amid the global coronavirus pandemic. Last year, the country’s outstanding debt jumped 20% to PHP11.73tr (USD228bn), as both domestic and external obligations increased. Such debt levels now account for 60.5% of gross domestic product.