Connect with us

Business and Economy

National government debt payments up in September

Published

on

Bureau of the Treasury

In a report, the BTr said the debt service bill during the month amounted to PHP238.9 billion, up from last year’s PHP206.9 billion. (File Photo: Bureau of the Treasury/Facebook)

MANILA – The national government’s (NG) debt payments went up by 15 percent in September this year, data from the Bureau of the Treasury (BTr) showed.

In a report, the BTr said the debt service bill during the month amounted to PHP238.9 billion, up from last year’s PHP206.9 billion.

More than half of the debt payments during the month went to amortization.

Data showed that principal payments amounted to PHP167.5 billion, higher by 13.9 percent than last year’s PHP147 billion.

Of the total, the BTr paid PHP148.8 billion to domestic lenders and PHP18.6 billion to foreign creditors.

Interest payments, meanwhile, amounted to PHP71.4 billion, up by 19.3 percent from the PHP59.8 billion in the same month last year.

Interest on local debt rose to PHP55.8 billion this year from PHP47.7 billion in 2022.

Domestic interest payments during the month consisted of PHP28.6 billion in fixed-rate Treasury bonds, PHP25.6 billion in retail Treasury bonds and PHP1.6 billion in Treasury bills.

Interest on foreign debt amounted to PHP15.5 billion, also higher from last year’s PHP12.1 billion.

For the first nine months of the year, BTr data showed debt payments reached PHP1.4 trillion.

Principal payments amounted to PHP940 billion while interest payments reached PHP460.1 billion.

In a Viber message, Rizal Commercial Banking Corporation chief economist Michael Ricafort said the higher debt service bill in September “may be a function of higher government debt maturities, especially from August to September 2023.”

“Higher US interest rates since 2022 also fundamentally increased the government’s debt servicing bill. The weaker peso exchange rate versus the US dollar also increased the peso equivalent of the country’s foreign debt, thereby increasing the national government’s debt service bill,” he said.

For the coming months, Ricafort said the same factors would continue to affect the NG debt service bill.

“However, relatively lower government bond maturities in 4Q (fourth quarter) 2023 to February 2024 could somewhat reduce the NG debt bill during this period,” he added.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Maria in Vancouver

Lifestyle6 days ago

Upgrade Your Life in 2025

It’s a brand new year and a wonderful opportunity to become a brand new you! The word upgrade can mean...

Maria in Vancouver3 weeks ago

Fantabulous Christmas Party Ideas

It’s that special and merry time of the year when you get to have a wonderful excuse to celebrate amongst...

Lifestyle1 month ago

How To Do Christmas & Hanukkah This Year

Christmas 2024 is literally just around the corner! Here in Vancouver, we just finished celebrating Taylor Swift’s last leg of...

Lifestyle2 months ago

Nobody Wants This…IRL (In Real Life)

Just like everyone else who’s binged on Netflix series, “Nobody Wants This” — a romcom about a newly single rabbi...

Lifestyle2 months ago

Family Estrangement: Why It’s Okay

Family estrangement is the absence of a previously long-standing relationship between family members via emotional or physical distancing to the...

Lifestyle4 months ago

Becoming Your Best Version

By Matter Laurel-Zalko As a woman, I’m constantly evolving. I’m constantly changing towards my better version each year. Actually, I’m...

Lifestyle4 months ago

The True Power of Manifestation

I truly believe in the power of our imagination and that what we believe in our lives is an actual...

Maria in Vancouver5 months ago

DECORATE YOUR HOME 101

By Matte Laurel-Zalko Our home interiors are an insight into our brains and our hearts. It is our own collaboration...

Maria in Vancouver5 months ago

Guide to Planning a Wedding in 2 Months

By Matte Laurel-Zalko Are you recently engaged and find yourself in a bit of a pickle because you and your...

Maria in Vancouver6 months ago

Staying Cool and Stylish this Summer

By Matte Laurel-Zalko I couldn’t agree more when the great late Ella Fitzgerald sang “Summertime and the livin’ is easy.”...