The decline was largely driven by a 37.7-percent fall in nonresidents’ net investments in debt instruments, which fell to $519 million from $833 million.
December inflows, however, dropped sharply to $110 million, down 85.2 percent year-on-year, driven by increased debt repayments by local firms to foreign investors, leading to net outflows in debt instruments.
While foreign companies' lending to their local subsidiaries is seeing constraints, there is notable interest in equity capital investments, especially from key partners. This highlights an ongoing diversification in foreign investment sources and the potential for sustained sectoral growth.
The BSP said this decrease was due mainly yo to a sharp 31.7% drop in net investments in equity capital from overseas, which fell to $161 million from $235 million in the same month last year.
Foreigners lent significantly less funds to long term local borrowers in April, while they also invested slightly lower amounts into their Philippine operations during the same period, according to the latest data from the Bangko Sentral ng Pilipinas.