GOVERNMENT DEBT service increased in September, driven by higher interest payments to domestic lenders, the Bureau of the Treasury (BTr) said.
The government settled P38.59 billion worth of debt in September, up 21.71% from a year earlier.
The debt payments were 67.52% lower month-on-month.
Of the September payments, 84.67% or P32.68 billion went to interest, up 23.77% year-on-year.
In September P5.92 billion went to principal settlements, up 11.66% from a year earlier. All principal payments went to external lenders.
Overall debt serviced in the nine months to September was P620.54 billion, up 6.5% from a year earlier.
This is equivalent to 84.57% of the P733.74 billion debt service budget for the year, based on the latest Budget of Expenditures and Sources of Financing (BESF) document.
Interest payments accounted for 43.72% of the total in the nine months to September, or P271.33 billion, which grew 8.97% year-on-year. Amortization payments meanwhile amounted to P349.21 billion, up 4.59% higher from a year earlier. — Elijah Joseph C. Tubayan