Ricky Martin Live

PH gov’t increases debt payments by 25.7% as of October, settles over 90% of target

The Marcos administration significantly increased its debt payments, reaching ₱1.86 trillion by the end of October, a 25.7% rise compared to ₱1.48 trillion in the same period last year, according to the Bureau of the Treasury. This figure represents 91.6% of the ₱2.03 trillion total debt service target for 2024, PhilStar reported.

Of the total debt payments, ₱1.22 trillion or 65.6% went toward amortization, covering the loan principal. This marks a 27.3% jump from ₱958.96 billion in the same period last year, with 96.8% of the ₱1.26 trillion programmed for amortization already settled. Interest payments, meanwhile, grew by 23% to ₱638.68 billion, amounting to 83.7% of the ₱763.44 billion earmarked for interest obligations.

The bulk of the payments supported domestic creditors, with 77% of the total allocated for local debt. Principal payments of ₱999.74 billion and interest payments of ₱453.46 billion were issued to domestic lenders, including payments for Treasury bonds, retail T-bonds, and Treasury bills. Foreign creditors received ₱222.22 billion in principal payments and ₱185.22 billion in interest payments.