According to the Ministry of Finance (BTR), the share of the national government (NG) debt bills more than doubled in April.
BTR data shows that debt bills in April rose 73.72% to pesos 280.9 billion from P161.7 billion in the same period last year.
In the month, debt bills also rose 53.2% from pesos 18.36 billion in March.
Debt services refer to the government’s payment of domestic and foreign loans.
In April, amortized payments were 23.445 billion pesos, an increase of 148.89% from 94.2 billion Philippine pesos in the same month of 2024.
BTR data shows that most debt payments in April are made up of amortized payments.
In April, principal payments for domestic debt rose 208.23% from US$55.1 billion a year ago to 16.83 billion to 16.83 billion.
In April, amortization of foreign debt payments increased by 65.27% to Pes 64.63 billion, from Pes 39.1 billion in April 2024.
Meanwhile, interest payments fell 31.19% to pesos 46.45 billion from pesos 67.5 billion a year ago.
Domestic interest payments in April fell 34.37% from Phillips 46.43 billion in the same period last year.
This consists of 21.3 billion columns of fixed-rate Treasury bills, fiscal bills (T-Bills) and 3.58 billion pesos of retail Treasury bonds (P1.76 billion pesos).
Interest payments on foreign borrowings fell 24.17% from pesos 2.17 billion a year ago to 15.98 billion to 15.98 billion.
Michael L., chief economist at Rizal Commercial Banking Corp.
“However, starting from August to September 2025, the maturity of NG NG debt/treasury bills will be the main payment that needs to be paid at that time,” Mr Ricafort said in a Viber message.
Mr Ricafort also said lower interest rates from the Sentral Ng Pilipinas in Bangkok starting in late 2024 and the U.S. Federal Reserve may also help reduce NG interest payments.
year to date
Meanwhile, in the first four months of this year, NG debt bills were 622.92 billion pesos, down 45.73% from P1.15 trillion P1.73% in the same period last year.
Amortized payments fell from Phillips 88.724 billion to 62.19% to 335.47 billion between January and April. This accounted for 53.85% of the four-month tall.
Amortized payments for domestic debt fell 77.42% to Pes 170.4 billion, while external payments rose 24.61% to Pes 16.57 billion.
Meanwhile, from January to April, interest payments ranged from 26.049 billion p26.049 billion from the same period a year ago.
Interest payments for domestic debt were 200.03 billion pesos, an increase of 12.8% from 185.31 million in 2024.
This is composed of Pes 146.1 billion for fixed-rate Treasury bills, Pes 43.21 billion for retail Treasury bills, Treasury bills (T-Bills) and others (PBP3.63 billion).
On the other hand, in the first four months, foreign debt rose 4.3% from 75.18 billion ph a year ago to 78.42 billion p78.42 billion.
Oikonomia Advisory and Research, Inc. “The maturity of government securities has caused an increase in government debt payments,” said Reinielle Matt M. Erece, an economist, in Viber’s message.
Mr Erece said he expects debt payments to increase in the coming months.
“The Government Debt Sales Act may continue to increase as demand for government securities is high. In addition, the government’s long-term fiscal consolidation plan could explain the increase in debt repayment in an attempt to reduce the country’s debt burden,” he said.
In 2025, the debt sales plan is set to P2.051 trillion, from P1.203 trillion US dollars and 84.8031 billion P84.8031 billion P84.81 billion.
As of April, the fresh high of NG debt stocks was 16.75 trillion. It is expected to hit P17.35 trillion by the end of the year.
By the end of March, the gross domestic product (GDP) ratio rose to 62%, the highest in 20 years.
“By the end of the presidency, the country is still firmly reducing the NG debt-to-GDP ratio to below 60%.” – Ara Inosante
