DEBT servicing by the national government increased 113 percent in October from a year earlier due to higher amortizations during the month, data from the Bureau of the Treasury (BTr) showed.
The government in October paid P42.24 billion to service its debts, more than doubling the P19.8 billion it paid a year earlier.
Month-on-month, the October payments rose 5 percent from P39.99 billion in September.
“This could simply be a lumpy month for payment of its obligations. More likely than not, this was timed with a refinancing issuance during the same month,” Bank of the Philippine Islands (BPI) Vice President and lead economist Emilio Neri Jr. commented on the debt data just issued.
For the first 10 months of 2016, debt payments were up 4.58 percent year-on-year at P216.94 billion.
As of end-October, the outstanding debt of the national government stood at P6.07 trillion, attributed to a weak local currency and higher fiscal spending.
Of the total debt servicing in October, interest payments eased 0.56 percent to P16.05 billion from P16.14 billion a year earlier, and were down by a more substantial 49 percent from P32.06 billion posted in September.
However, domestic interest payments rose 1.33 percent year-on-year to P9.52 billion, while servicing of foreign debt fell 3.19 percent to P6.52 billion.
Amortization expense ballooned 616 percent year-on-year to P26.18 billion in October from P3.65 billion in the same month of 2015, and soared 254 percent from P7.38 billion in September.
Domestic amortization increased to P2.13 billion from P753 million a year ago, while foreign amortization rose 728 percent to P24.05 billion from P2.90 billion.