Gov't posts record BOP surplus in September

ABS-CBN News

Posted at Oct 19 2010 04:51 PM | Updated as of Oct 20 2010 12:51 AM

MANILA, Philippines - Proceeds from a loan and bond issue boosted the country's balance of payments (BOP) surplus to a record high of $3.1 billion in September, the Bangko Sentral ng Pilipinas (BSP) reported Tuesday.

Last month's BOP surplus, the highest monthly inflow ever, was over 5 times the $611 million surplus recorded in September last year.

This brought the surplus for the first 9 months of 2010 to $6.54 billion, way above the full-year estimate of $3.7 billion.

The BSP said proceeds from a $250-million World Bank loan and the government's $1-billion global peso bond issue last month boosted the country's BOP surfeit in September.

Strong inflows of remittances from overseas Filipinos and foreign portfolio investments were also key drivers.

Remittances for the first 8 months of the year amounted to $12.18 billion, up 7.4% from a year earlier. The central bank expects remittances to grow 8% this year from last year's $17.3 billion, a record high.

Foreign portfolio fund flows to the Philippines, on the other hand, hit a 16-month high in September, with 74% going to the stock market.