DEBT servicing by the national government (NG) markedly rose in July due to higher interest payments, data from the Bureau of the Treasury showed.
At P108.06 billion, debt payments surged from the P81.17 billion recorded a year earlier. It was also higher than the P65.14 billion recorded in June this year.
Year to date, however, NG debt payments were substantially lower at P876.16 billion compared to January-July 2024’s P1.36 trillion, which was driven by hefty amortization payments in February and March of that year.
This year, interest payments surged to P106.22 billion from P79.43 billion a year earlier and June’s P57.42 billion.
Local creditors accounted for almost all interest payments at P82.92 billion, higher than the P55.32 billion recorded a year ago and P38.48 billion in the previous month.
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Fixed-rate Treasury bonds accounted for P73.61 billion, followed by T-bonds (P3.58 billion) and retail T-bills (P3.89 billion).
Amortization, meanwhile, declined in July to P1.84 billion from P7.72 billion in June but was slightly higher than the year-earlier P1.74 billion, with foreign amortization accounting for the bulk at P1.66 billion.
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Last week, the Treasury reported that the NG’s outstanding debt had already breached the P17.359-trillion debt cap for 2025, hitting P17.56 trillion as of the end of July.
It rose from June’s P17.27 trillion and the year-ago P15.69 trillion and also exceeded the P16.05 trillion posted at the end of 2024.
Of the total debt stock, 24 percent was borrowed abroad while 76 percent came from domestic sources.
Domestic debt rose to P12.11 trillion as of end-July, higher than the P11.95 trillion recorded in June and P10.75 trillion a year ago. Compared to the end of 2024, domestic debt rose from P10.93 billion.
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External debt, meanwhile, totaled P5.45 trillion from the month-earlier P5.32 trillion. It was P4.94 trillion in July last year and ended 2024 at P5.12 trillion.
