PH debt payments down 15% in Jan-Aug

MANILA, Philippines – The government paid 15% less for debt servicing in January-to-August period.

The latest data from the Bureau of Treasury showed that debt payments made by the government declined 38% to P40 billion in August from P66 billion recorded a year ago, pulling down the debt servicing during the 8-month period.

Treasury data showed that debt servicing went down to P425.09 billion as of end-August, down from the P501.6 billion a year ago.

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Of the amount, the government settled P196.21 billion for principal payments, down 32% from P290.5 billion paid a year ago.

Principal payments for domestic debt amounted to P98.63 billion compared to the P250.772 billion paid a year ago, while principal payments to foreign lenders rose to P97.5 billion versus to P39.8 billion a year ago.

Interest payments reached P228.8 billion, data from the Treasury also showed.

Interest on domestic debt amounted to P151.9 billion compared to the P76.93 billion for interest on foreign debt.

Debt servicing refers to payments made on the government’s local and foreign debt obligations. – Rappler.com