Debt servicing by the national government declined in October, falling by double digits from a year earlier on the back of lower amortizations, data from the Bureau of the Treasury showed.
Debt payments amounted to P19.8 billion, down 15 percent compared to the P23.44 billion recorded a year earlier. Against September, debt servicing also eased by 52 percent from P41.41 billion.
Government interest payments inched up by 3.7 percent to P16.14 billion. Of the amount, domestic lenders received P9.4 billion while P6.74 billion went to service foreign debts.
Offsetting high interest payments were amortization expenses, which at P3.66 billion were lower by 45 percent year-on-year. Of the total, domestic payments fell by 82 percent to P753 million. Foreign amortizations stood at P2.91 billion, 15 percent higher.
Year to date, debt payments were up 6 percent to P479.35 billion from P452.7 billion.
The Treasury bureau earlier reported that the government’s outstanding debt rose by 4.3 percent to P5.96 trillion as of October from the same period last year.
Domestic borrowings climbed to P3.9 trillion or 3.9 percent from a year ago while loans from foreign investors rose to P2.06 trillion. National government-guaranteed obligations, meanwhile, fell 1.3 percent to P440 billion.