THE state’s debt service from January to September rose by over P500 billion to P1.4 trillion as the national government paid more interest payments and amortization, according to the Bureau of the Treasury (BTr).
Treasury data showed that the state’s debt payments from January to September expanded by P510.465 billion to P1.4 trillion from P889.846 billion in the same period of last year.
The increase in the overall debt payments was driven by double-digit growth rates in the state’s payments to both interests and amortization during the reference period.
The national government’s amortization payments almost doubled as it reached P940.187 billion during the nine-month period, from P489.870 billion last year, based on Treasury data.
Bulk of the payments went to domestic amortization at about P852 billion. The amount is double the P407.939 billion the national government paid for domestic amortization during the same nine-month period.
External amortization payments by the national government reached P88.186 billion, up by 7.63 percent from last year’s P81,931 billion, according to the Treasury.
Interest payments by the national government from January to September totaled to P460.124 billion, 15 percent higher than last year’s P399.976 billion, Treasury data showed. Bulk of the interest payments or about 69 percent went to domestic debt while the remaining 31 percent went to foreign debt.
The state’s domestic interest payments increased by 3.6 percent year-on-year to P317.314 billion from P306.21 billion, Treasury data showed.
The national government paid P188.3 billion in interest on fixed-rate Treasury bonds during the period, slightly lower than the P196.687 billion it paid in the same period of last year.
The state’s interest payments for retail treasury bonds grew by 16.85 percent to P112.809 billion from P96.541 billion while its payments for the interests of Treasury bills rose by 20.96 percent year-on-year to P12.623 billion.
Meanwhile, the national government’s foreign interest payments expanded by 52 percent to P142.81 billion from P93.766 billion last year, according to the Treasury.
In September alone, the national government paid P238.99 billion in debt, according to Treasury data. The amount was 15.46 percent higher than the P206.996 billion it paid in September of last year.
The state’s interest payments during the reference month rose by 19.28 percent to P71.448 billion from P59.897 billion while its amortization payments increased by 13.9 percent year-on-year to P167.551 billion, Treasury data showed.