The national government’s debt payments in August fell by 73.42 percent as both interest payments and amortization fell from the year ago levels.
According to data posted in the Bureau of the Treasury’s website, the government spent P31.58 billion for its domestic and international debts in August 2019.
Data showed this is significantly lower than the P118.84 billion paid out in the same period in 2018.
Interest payments in August totaled to P19.61 billion, 30.71 percent lower than the P28.3 billion paid in the same period last year.
Of the amount, P9.14 billion was paid to domestic creditors while P10.47 billion was for international debt.
“Interest payments declined by P8.7 billion year-on-year owing to the combined impact of bond maturities, discounts, and reissuances of fixed-rate treasury bills at a premium,” the Department of Budget and Management (DBM) said in its assessment of the August expenditure performance.
“As percent of total disbursements, interest payments, likewise, declined to 6.9 percent from 10.9 percent in August last year,” DBM added.
Principal payments also fell 86.78 percent to P11.97 billion from the P90.54 billion paid in the same period a year ago.
Of the total amortization made during the period, P8.78 billion was used to pay local lenders while P3.19 billion was spent to settle foreign obligations.
As of end-August debt payments also fell by 12.48 percent to P509.3 billion from P581.95 billion a year ago.
This was due to the decline in amortization, while interest payments rose during the period.
Principal payments amounted to P258.65 billion, 24.66 percent down from the P343.29 billion recorded as of end-August last year.
Interest payments on the other hand went up by 5.03 percent to P250.65 billion from P238.65 billion a year ago.