NG debt service bill drops sharply in October

THE NATIONAL Government's (NG) debt service bill fell sharply in October on lower amortization payments, the Bureau of the Treasury said.

- Aubrey Rose A. Inosante

Latest data from the Treasury showed that the debt service bill declined by 69.66% to P65.78 billion in October from P216.85 billion in the same month last year.

Month on month, the debt service bill slumped by 79.94% from P327.89 billion in September.

Debt service refers to the payments made by the government on domestic and foreign borrowings.

The bulk or 87.21% of debt payments were made up of interest payments, while the rest were amortization payments.

In October, amortization payments stood at P8.42 billion, down by 97.79% from P161.46 billion in the same month a year ago.

Principal payments on domestic debt plunged by 97.93% to P2.49 billion in October from P120 billion in the same month last year.

Amortization paid on foreign debt declined by 85.7% to P5.93 billion in October from P41.46 billion in the same month in 2024.

On the other hand, interest payments inched up by 3.57% to P57.37 billion in October from P55.39 billion in the same month a year ago.

Domestic interest payments increased by 18.3% to P41.8 billion in October from P35.33 billion in the same month last year.