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By Chino S. Leyco Reporter
GOVERNMENT debt payments
increased in the first three months of the year despite lower
interest rates and the rapid appreciation of the peso, Bureau of
Treasury data showed.
The government’s debt servicing
reached P239.36 billion, or P61.78 billion higher than the P175.58
billion paid out a year ago. Debt servicing this year is programmed
at P607.21 billion, lower than last year’s P614.069 billion.
Of the total paid out in the
first quarter, P183.5 billion was made to domestic lenders.
Debt servicing refers to payments
of both interest and principal. The debt service burden excludes
rescheduling or refinancing of existing debt and conversion of
obligations to equity.
Interest payments grew by P11.05
billion to P100.2 billion at end-March from P89.15 billion a year
ago. All the interest was paid to local lenders.
Payment of principal rose P53.6
billion to P140 billion in the first three months from P86.43
billion last year.
The higher debt servicing comes
as the government incurred a funding gap in the first three months
this year.
The government’s first-quarter
deficit reached P51.6-billion. The peso averaged 41.87 to the dollar
for the period.
The Philippines last year trimmed
its debt and cut payments on these obligations, as the government
took advantage of a strong peso to prepay foreign
exchange-denominated obligations. Low interest rates meanwhile
helped limit debt servicing.
This year, the government is
aiming to balance its budget. It has programmed a P1.23-trillion
allocation for the period.
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