Debt payments down 25% to P378.369 billion in first half

The amount of debt paid by the government in the first half of the year dropped by a fourth to P378.369 billion as both amortization and interest payments declined.

Debt payments from January to June went down 25.5 percent from P507.793 billion a year ago, the latest Bureau of the Treasury data showed.

In the first six months, the government paid P86.621 billion in interest, down from P153.712 billion last year.

Interest worth P86.621 billion was settled for domestic debt, mainly from the issuance of treasury bills and bonds. The remaining P49.888 billion in interest payments were for foreign borrowings.

The government also paid P226.792 billion in amortization as of end-June, down from P354.081 billion a year ago.

For local liabilities, principal payments reached P115.738 billion; as for foreign debt, amortization payments amounted P111.054 billion.

For 2017, the government had programmed to pay P647.278 billion in debt, of which P334.876 billion will go to interest payments while P312.403 billion will be for principal amortization.

As the peso slid to nearly 11-year lows in June, the national government’s outstanding debt inched up to a record high of P6.417 trillion at the end of the first six months.

Outstanding liabilities as of end-June rose 1.1 percent from P6.345 trillion last May and 7.9 percent from P5.948 trillion in June last year, the latest Treasury data showed.