Gov't debt payments hit P69 B in May

The government jacked up its debt service to almost P70 billion in May with the bulk going to interest payments from both domestic and foreign lenders.

- LOUISE MAUREEN SIMEON

Data from the Bureau of the Treasury showed that the administration hiked its debt payments in May, settling some P68.98 billion, up by 40.6 percent from the P49.05 billion in the same period last year.

Almost 90 percent of the debt service was for interest payment at P61.1 billion. This is a 48 percent increase from the P41.34 billion paid in the comparative period.

On the other hand, payment for amortization or the settlement of principal inched up by 2.3 percent to P7.88 billion from P7.7 billion in May 2023.

Spending on amortization goes to returning the loan principal, while interest payments go to complying with interest obligations.