Government debt service down by 14% from Jan. to April

By VG Cabuag, BusinessMirror

Posted at May 29 2012 07:22 AM | Updated as of May 29 2012 06:26 PM

MANILA, Philippines - The total debt payment of the Aquino administration decreased from January to April as a result of lower principal payments, data from the Bureau of Treasury showed.

According to the data, the government spent some P299.81 billion to pay its debts during the four-month period, which was about 14 percent lower than the P350.29 billion it paid during the same period last year.

About P185.19 billion was paid for principal payment, down by more than 25 percent from P248.14 billion spent from January to April in 2011.

Of the amount settled for principal payments, about P166.36 billion was paid to domestic creditors, while P18.83 billion was paid to foreign lenders.

Meanwhile, interest payments amounted to P114.62 billion or 12 percent higher than last year.

Of the total interest payments made, some P66.88 billion was used to settle local debts, while the remaining P47.75 billion was for foreign obligations.

For April alone, the Aquino administration spent P38.57 billion to service its debts, or more than double compared with the P18.22 billion paid in April last year.

Of the total debt payments, P22.44 billion was for principal payments, while P16.14 billion was for interest payments.