Public debt repayments rise in July – Manila Bulletin
Debt payments by the national government rose in July due to higher amortization, according to data from the Office of the Treasury.
National government debt service reached 156.2 billion pesos in July this year, jumping 158 percent from the 60.54 billion pesos paid in the same month last year.
Debt service refers to interest and principal payments. The debt service burden excludes actual outflows such as rescheduling or refinancing of existing debt and conversion of debt to equity.
Principal payment accelerated to 104.11 billion pesos from 1.51 billion pesos in July last year.
During the month, principal payments consist of domestic payments amounting to 103.46 billion pesos, compared to zero the previous year.
Offshore debt payments, meanwhile, reached 647 million pesos in July, a 57% increase from 1.51 billion pesos.
Interest payments, on the other hand, fell 12% to 52.1 billion pesos in July, from 59.02 billion pesos in 2021.
Of the total, domestic and foreign interest payments reached 32.42 billion pesos and 19.67 billion pesos respectively.
From January to July, debt payments amounted to 305.25 billion pesos, down 46% from 566.68 billion pesos a year ago.
Of this amount, interest and principal payments reached 309.3 billion pesos and 305.25 billion pesos, respectively.
Earlier, the Treasury office reported that government debt hit a new high at 12.89 trillion pesos, approaching the 13 trillion peso mark at the end of July 2022, up 11% from 11 .61 trillion pesos in the same period last year. .
Since the end of December 2021, public debt has widened by 9.9% or 1,160 billion pesos
The total debt stock at the end of July 2022 was mainly composed of domestic borrowings at 68.5%, while the remaining 31.5% was external borrowings.
But despite the rise, the finance ministry had assured that the government could still gradually reduce its debt ratio to 52% by the end of the Marcos administration.
For 2022, the debt-to-gross domestic product (GDP) ratio is expected to fall to 61.8% before falling to 61.3% next year.
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