Gov’t debt payments drop 28.3% in September
MANILA, Philippines – The government's debt payments in the first 9 months of 2014 fell by 28.29% as amortization and payments dropped.
Lower payments for amortization also pulled down the national government's debt payment by 38% in August compared to the same period in 2013.
The government spent P337.12 billion ($7.50 billion*) to pay its debts as of end-September, lower than the P470.14 billion ($$10.46 billion) registered in the same period in 2013.
The bulk of the decline is due to principal payments that fell by 62.4% to P79.73 billion ($1.77 billion) from the P212.05 billion ($4.72 billion) a year ago.
Amount paid to local lenders totaled P2.57 billion ($57.20 million) while P77.15 billion ($1.72 billion) was spent to settle foreign obligations, both for the 3-quarter period.
Also as of end-September, interest payments fell to P257.39 billion ($5.73 billion) from the P258.9 billion ($5.76 billion) in the same period last year.
Amount paid to domestic creditors totaled P172.45 billion ($3.84 billion) while P84.94 billion ($1.89 billion) was paid for international debt for September.
Lower interest payments resulting in savings
The Aquino administration has set P763.25 billion ($16.98 billion) to pay for its local and international debts which are scheduled to mature next year, data from the Department of Budget and Management (DBM) showed.
The year-to-date interest payments was lower than programmed, thus generating savings of P19 billion ($423.02 million), the Department of Finance (DOF) previously said.
"Interest payments as a share of the national government’s disbursements continued its downward trend – as of the 3rd quarter of this year, the percentage has dropped to 17.7% from 18.9% in the same period a year ago," the DOF said.
For September alone, the government's debt payments also fell by 24.78% to P33.89 billion ($754.29 million) from the P45.06 billion ($1 billion) in the same period a year ago.
Amortization payments totaled P5.06 billion ($112.63 billion), while interest payments took up the remaining P28.83 billion ($641.72 million).
For next year, the government's programmed debt payments is projected to be 6.83% lower than the P819.19 billion ($18.22 billion) set for 2014, according to the proposed Budget of Expenditures and Sources of Financing for 2015.
Bulk of the amount set for 2015 or 51% will be spent for amortization, while the remaining 49% will be paid for interest payments. – Rappler.com
*($1 = P44.95)