The government spent P597.5 billion in the nine months to September to pay its debt. The amount was 2 percent lower than the P607.3 billion settled in the same period last year, according to the Bureau of the Treasury.
The slight decrease in debt servicing during the period was observed as Malacañang continued to focus more on principal payments than interest payments.
From January to September, the government settled a total of P375.1 billion in principal loans, including P273.9 billion in domestic debt and P101.1 billion secured from abroad.
Total principal payment in the first nine months was 3 percent higher than the P362.7 billion posted in the same period last year.
Also, the government paid a total of P222.4 billion in interest, covering P131 billion of domestic debt and P91.4 billion in foreign borrowings.
Total interest payment during the period was 9 percent lower than the P244.5 billion recorded in the same period of 2010.
In September alone, the government paid a total of P72.4 billion, including P55.9 billion in domestic debt and P16.5 billion in foreign obligations.
The month’s total was 15 percent lower than the P84.7 billion settled in the same month last year.
Budget Secretary Florencio B. Abad said Malacañang decided to spend less for interest payments due to the recent upgrade in credit rating accorded by international debt watchers to the Philippines in the past year.
Last June, Fitch Ratings raised the country’s long-term foreign currency debt rating to a notch below investment grade, citing “progress on fiscal consolidation against a track record of macro stability, broadly favorable economic prospects and strengthening external finances.”
Latest data from the Bureau of the Treasury showed that the stock of outstanding debt eased to P4.75 trillion as of July, decreasing by about P64 billion from the June level mainly due to a stronger peso and the net redemption of domestic securities.
With the latest population estimate at 95.6 million, the amount of total outstanding debt would mean that each citizen would have a share of P49,645.