Phl pays less on foreign debts

Principal payments down 23% in 8 months

- By KEISHA TA-ASAN

Based on BSP data, the country's debt service burden was 3.8 percent lower than the $9.02 billion recorded in January to August last year.

This translated to a lower debt service burden to gross domestic product (GDP) ratio of 3.2 percent in end-August from 3.6 percent in the comparable year-ago period.

During the eight-month period, principal payments dropped by 23.3 percent to $3.46 billion from last year's $4.51 billion.

Meanwhile, interest payments rose by 15.6 percent to $5.22 billion in the first eight months from $4.51 billion in the same period last year.

The debt service burden represents principal and interest payments after rescheduling.