Debt service payments fall 82.7% in May

THE government’s debt service bill in May fell 82.7% from a year earlier to P27.41 billion, the Bureau of the Treasury (BTr) said.

Interest payments, which accounted for the bulk of the total, fell 6.8% year on year to P19.67 billion.

Domestic interest payments decreased 15.34% to P15.78 billion from P18.63 billion year on year.

Foreign interest payments, meanwhile, rose 57.21% from a year earlier to P3.89 billion.

Amortization declined by 94.3% to P7.74 billion.

The government made no amortization payments to domestic creditors during the month, while amortization paid to foreign creditors rose 5.2%.

In the five months to May debt service fell 21.7% to P301.43 billion.

Interest payments during the period totaled P150.98 billion, up 6.7% year on year.

Amortization in the first five months accounted for P150.45 billion, down 38.2% a year earlier. — Reicelene Joy N. Ignacio