The national government’s total debt payments in the first half of the year jumped 98.08 percent as amortization significantly rose from the previous year’s level, data released by the Bureau of the Treasury (BTr) showed.
According to the latest cash operations report, the national government’s debt payments in January to June stood at P907.93 billion, much higher than the P458.36 billion recorded during the same period a year ago.
Amortization rose by 210.96 percent to P625.47 billion from the P201.14 billion paid out in January to June 2022.
On the other hand, interest payments as of June totaled to P282.46 billion, which went up 9.81 percent from the P257.22 billion paid out as of the same period the previous year.
In a report, the Department of Budget and Management (DBM) said interest payments in the first semester were below the P302.8 billion program by P20.3 billion or 6.7 percent, primarily due to settlement of premia from the reissuance of bonds.
Meanwhile, the year-on-year increase was mainly on the back of higher interest rates including secured overnight financing rate for foreign loans.
In June alone, debt payments amounted to P88.4 billion, recording a 99.61 percent increase from P44.29 billion in the same period in 2022.
Amortization amounted to P35.52 billion, surging from the P7.53 billion recorded a year ago.
Interest payments totaled to P52.88 billion, also 43.89 percent up from the June 2022 level of P36.75 billion.
The DBM said in its report the increase in interest payments for the month was due to higher foreign exchange rates this year, coupon payments and premiums.
It was earlier reported that national government gross borrowings in the first semester rose 32.91 percent year-on-year, as both foreign and domestic financing registered double-digit increases.
Gross borrowings in the first six months of the year jumped to P1.42 trillion from the P1.07 trillion recorded a year ago.
Gross domestic borrowings for the period accounted for the bigger chunk at P1.06 trillion, up 42.53 percent from the year ago level of P741.26 billion.
Gross external borrowings for the period went up by 11.27 percent to P366.44 billion from P329.34 billion a year ago.
