GOVERNMENT debt payments swung the country's balance of payments (BoP) into a surplus in May, the Bangko Sentral ng Pilipinas (BSP) reported late Wednesday.

The country posted a $2.0-billion BoP surplus in May, reversing from April's $639-million and last year's $439-million shortfall.

The surplus "reflected inflows arising mainly from the national government's (NG) net foreign currency deposits with the Bangko Sentral ng Pilipinas, which include proceeds from its issuance of ROP (Republic of the Philippines) global bonds and net income from the BSP's investments abroad," the central bank said in a statement.

The year-to-date BoP position, meanwhile, narrowed to $1.6 billion from the year-earlier $2.9 billion.

This was mainly due to "the narrowing trade in goods deficit alongside the continued net inflows from personal remittances, net foreign borrowings by the NG, foreign direct investments, foreign portfolio investments and trade in services," the BSP said.

The BoP surplus also reflected a surge in gross international reserves to $105.0 billion as of end-May from $102.6 billion a month earlier, the central bank said.

The level was said to represent "a more than adequate external liquidity buffer equivalent to 7.7 months' worth of imports of goods and payments of services and primary income."

"It is also about 6.1 times the country's short-term external debt based on original maturity and 3.8 times based on residual maturity," the central bank added.