Government debt payments down 21.1 percent in April
![Government debt payments down 21.1 percent in April](https://media.philstar.com/photos/2024/06/02/15_2024-06-02_18-42-58.jpg)
MANILA, Philippines — The government trimmed its debt service by 21.1 percent in April amid the decline in payments for the loan principal borrowed by the state.
Data from the Bureau of the Treasury showed that the Marcos administration slashed its debt payments in April, settling P161.7 billion, down by 21.1 percent from the same period last year.
Bulk of the debt service was for amortization or the settlement of principal at P94.2 billion. This was 40.5 percent lower than the P158.5 billion paid in April 2023.
On the other hand, interest payment soared by 45.8 percent to P67.5 billion from P46.3 billion in the comparative period last year.
Spending on amortization goes to returning the loan principal, while interest payments go to complying with interest obligations.
Almost the entire payment for amortization at P55.1 billion was remitted to domestic creditors. Only P39.1 billion in principal payments were made to external sources.
Meanwhile, interest payments at P46.4 billion were issued to domestic creditors. This is 66.9 percent higher than the P27.8 billion a year ago.
Broken down, the government paid the interest for P38.4 billion in fixed-rate Treasury bonds (T-bonds), P3.58 billion in retail T-bonds and P2.7 billion in Treasury bills.
The Treasury sells government securities every week to generate funding for public programs and projects.
Short-dated T-bills have tenors of 91 days, 182 days and 364 days while long-term T-bonds have maturities of up to over 20 years.
Aside from payment to local lenders, the government settled P21.1 billion in interest owed to foreign financiers in February.
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