THE government’s debt service bill fell over 16% year on year in the first quarter, after a decline in foreign and domestic principal settlements, which offset the increase in interest payments, the Bureau of the Treasury (BTr) said.
The national government paid out P208.27 billion in the first three months of the year, down 16.24% from a year earlier.
Of the total, P107.23 billion consisted of interest payments, up 9.58% from a year earlier.
It paid down principal worth P101.04 billion during the period, down 33% from a year earlier.
Some P60.33 billion of the interest payments during the period were associated with maturing Treasury bills, Treasury bonds, and Retail Treasury bonds, up 1% from a year earlier. Some P46.89 billion was paid to foreign holders of these bills and bonds, up 22.94%.
Some P39.46 billion, meanwhile, went towards settling domestic principal obligations while the corresponding foreign payment was P61.58 billion, down 29.08% and 35.29%, respectively.
In March, the government made P33.91 billion in debt service payments, down 63.17% from a year earlier.
During that month, P27.54 billion went to interest, down 11.93% year on year, while principal repayments amounted to P6.36 billion, down 89.54%.
The government borrows to pay for projects and refinance maturing debt, among others. It plans to drastically raise spending, particularly on infrastructure, and plans to incur a deficit of up to 3% of gross domestic product (GDP).
This year, it has a P888.227-billion financing program, with a 65-35% borrowing mix in favor of domestic creditors. — Elijah Joseph C. Tubayan
