Gov’t debt payments up 5% in Jan-Oct

The amount of debt paid by the government during the first 10 months of the year increased by 5 percent to P649.7 billion, the latest Bureau of the Treasury data showed.

Debt payments from January to October rose from P616.9 billion a year ago.

The government paid P295.3 billion in interest as of the end of October.

Interest worth P197.6 billion was settled for domestic borrowings, mostly from the issuance of treasury bills as well as fixed-rate T-bonds and retail treasury bonds (RTBs).

The balance of P97.7 billion in interest payments was for foreign debt.

Also, the government paid P354.4 billion in amortization as of end October.

Domestic amortization, which reflected actual principal repayments to creditors, including those serviced by the Bond Sinking Fund (BSF), amounted to P257.7 billion.

Foreign amortization, which included prepayments made due to bond exchange transactions, reached P96.6 billion.

The government had programmed to settle some P682.5 billion in debt this year.