Gov’t debt payments jumped 96% in July

The national government paid debt worth P92.46 billion in July, almost double the amount paid a year ago as it settled higher interest and principal amortization.

The latest Bureau of the Treasury data showed that debt payments in July jumped 96 percent from P47.211 billion in the same month last year.

Interest payments rose to P50.965 billion from P44.841 billion a year ago.

The interest paid for domestic debt incurred through the sale of Treasury bills, fixed-rate Treasury bonds and retail Treasury bonds amounted P30.639 billion.

For foreign obligations, the government settled P20.326 billion in interest.

Meanwhile, amortization payments climbed to P41.495 billion in July from a year ago’s P2.37 billion.

Domestic amortization, which the Treasury said reflected actual principal repayments to creditors such as those serviced by the Bond Sinking Fund and Central Bank-Board of Liquidators, reached P39.946 billion.

As for foreign amortization that included prepayments for bond exchange transactions, that month’s payment amounted P1.549 billion.

From January to July, the government serviced P477.714 billion in debt—P231.036 billion in interest on top of P246.678 billion in amortization.