The government settled P558.2 billion in debt as of September, a tenth lower than a year ago as the government saved up on interest payments.
The latest Bureau of the Treasury data showed that the amount of obligations paid in the first nine months declined 10 percent from P620.5 billion in the same period last year.
End-September interest payments amounted to P293.7 billion, up 8.3 percent from P271.3 billion a year ago.
But the Department of Budget and Management (DBM) said actual interest payments during the first nine months were 7.6-percent below than the P317.8-billion program for the period.
“Savings on interest payments amounted to P23.8 billion or 17.3 percent of the program brought largely by the combined impact of bond maturities, discounts, reissuances of fixed-rate Treasury bonds at a premium, and exchange rate fluctuations,” the DBM said.
From January to September, the government paid P196.7 billion in interest of locally sourced borrowings coming from the sale of Treasury bills and bonds.
Interest payments for foreign debt reached P97 billion during the nine-month period.
Primary amortization from January to September hit P264.5 billion, down by a fourth from a year ago’s P349.2 billion.
Domestic amortization payments amounted P145.9 billion.—BEN O. DEVERA