Thailand
Philippines: Govt debt servicing decreases in April
Increased interest payments and amortization costs reduced the national government’s debt servicing in April by more than double compared to payments made a year earlier, data released by the Bureau of the Treasury showed over the weekend.
In April, debt payments totaled P64.28 billion, down 130.74 percent from P148.34 billion a year ago.
Interest payments increased by 8.86 percent to P23.81 billion from P21.88 billion in April 2020, accounting for 37.05 percent of total servicing.
In April, domestic interest payments inched up by 16.91 percent to P17.50 billion, up from P14.96 billion the previous month, while external interest payments decreased by 8.57 percent to P6.31 billion, down from P6.91 billion.
In April, amortization expenses fell to P40.46 billion, plunging from P126.46 billion a year earlier.
Domestic amortization declined to P38.16 billion, while external amortization eased to P2.30 billion.
Year-to-date, debt payments have climbed by 19.96 percent to P585.79 billion, up from P488.31 billion in the same period last year.
The government settled debts to creditors for P962.46 billion in 2020, picking up by 14.24 percent from P842.44 billion in 2019.
According to the Treasury bureau, the national government’s outstanding obligations reached a new all-time high of P10.99 trillion at the end of April. Foreign creditors made up 28.9 percent of the total, while local creditors made up the other 71.1 percent.
Domestic debt grew by 0.9 percent to P7.81 trillion in April due to net government securities issuance.
External debt, on the other hand, increased by 4.9 percent to P3.17 trillion, thanks to a net availment of P163.01 billion in foreign loans, including P146.16 billion through a global bond issuance.
According to the Budget department’s Budget of Expenditures and Sources of Financing, the national government has a debt service spending program of P1.79 trillion for fiscal year 2021.
Interest payments will amount to P531 billion, with principal amortization accounting for P1.26 trillion.
Source: https://www.manilatimes.net/2021/06/14/business/govt-debt-servicing-decreases-in-april/1803133