The Gist
News and Features
Global Philippines Fine Living
Insights
INVESTMENT STRATEGY
Economy Stocks Bonds Currencies
THE BASICS
Investment Tips Explainers Retirement
Webinars
2024 Mid-Year Economi Briefing, economic growth in the Philippines
2024 Mid-Year Economic Briefing: Navigating the Easing Cycle
June 21, 2024
Investing with Love
Investing with Love: A Mother’s Guide to Putting Money to Work
May 15, 2024
retirement-ss-3
Investor Series: An Introduction to Estate Planning
September 1, 2023
View All Webinars
Downloads
grocery-2-aa
Economic Updates
Inflation Update: Prices rise even slower in May 
DOWNLOAD
Buildings in the Makati Central Business District
Economic Updates
Monthly Recap: BSP to outpace the Fed in rate cuts 
DOWNLOAD
economy-ss-9
Economic Updates
Quarterly Economic Growth Release: 5.4% Q12025
DOWNLOAD
View all Reports
Metrobank.com.ph Contact Us
Follow us on our platforms.

How may we help you?

TOP SEARCHES
  • Where to put my investments
  • Reports about the pandemic and economy
  • Metrobank
  • Webinars
  • Economy
TRENDING ARTICLES
  • Investing for Beginners: Following your PATH
  • On government debt thresholds: How much is too much?
  • Philippines Stock Market Outlook for 2022
  • No Relief from Deficit Spending Yet

Login

Access Exclusive Content
Login to Wealth Manager
Visit us at metrobank.com.ph Contact Us
Access Exclusive Content Login to Wealth Manager
Search
The Gist
News and Features
Global Philippines Fine Living
Insights
INVESTMENT STRATEGY
Economy Stocks Bonds Currencies
THE BASICS
Investment Tips Explainers Retirement
Webinars
2024 Mid-Year Economi Briefing, economic growth in the Philippines
2024 Mid-Year Economic Briefing: Navigating the Easing Cycle
June 21, 2024
Investing with Love
Investing with Love: A Mother’s Guide to Putting Money to Work
May 15, 2024
retirement-ss-3
Investor Series: An Introduction to Estate Planning
September 1, 2023
View All Webinars
Downloads
grocery-2-aa
Economic Updates
Inflation Update: Prices rise even slower in May 
June 5, 2025 DOWNLOAD
Buildings in the Makati Central Business District
Economic Updates
Monthly Recap: BSP to outpace the Fed in rate cuts 
May 29, 2025 DOWNLOAD
economy-ss-9
Economic Updates
Quarterly Economic Growth Release: 5.4% Q12025
May 8, 2025 DOWNLOAD
View all Reports
BusinessWorld 4 MIN READ

July debt service bill jumps by 26%

September 17, 2024By BusinessWorld
Related Articles
Senate OK’s PHP5.77-T nat’l budget November 29, 2023 Coal plant moratorium to stay — DoE April 26, 2024 PSEi falls to 6,300 level as BoP deficit widens May 21, 2025

The National Government’s (NG) debt payments jumped in July as interest payments on local borrowings increased, the Bureau of the Treasury (BTr) said.

The latest BTr data showed that the debt service bill went up 26.13% to PHP 81.17 billion in July from PHP 64.36 billion in the same month a year ago.

Month on month, debt payments also rose by 22.85% from PHP 66.08 billion in June.

The debt service bill refers to payments made by the government on its domestic and foreign borrowings.

Interest payments comprised 97.85% of the debt service bill for the month.

In July, interest payments increased by 24.99% to PHP 79.43 billion from PHP 63.55 billion in the same month in 2023.

Broken down, interest paid on domestic obligations soared by 41.84% to PHP 55.32 billion in July from PHP 39 billion last year.

This consisted of PHP 47.03 billion for fixed-rate Treasury bonds, PHP 3.58 billion for retail Treasury bonds, PHP 2.9 billion for Treasury bills (T-bills), and others (PHP 1.81 billion).

Interest payments made on external debt dipped by 1.78% to PHP 24.11 billion in July from PHP 24.55 billion last year.

On the other hand, principal payments more than doubled to PHP 1.74 billion in July from PHP 808 million a year earlier.

Principal payments on external debt surged by 113.58% to PHP 1.56 billion in July from PHP 729 million in the same month last year.

Amortization on domestic debt soared by 134.18% to PHP 185 million in July from PHP 79 million a year prior.

In the first seven months of the year, NG debt payments jumped 40.28% to PHP 1.36 trillion from PHP 972.29 billion a year ago.

Principal payments accounted for 66.52% of debt servicing as of end-July.

Amortization payments jumped by 44.87% to PHP 907.3 billion during the January-to-July period from PHP 626.28 billion a year ago. Principal payments on domestic debt stood at PHP 757.62 billion, while amortization payments on external debt amounted to PHP 149.68 billion.

In the January-July period, interest payments rose by 31.98% to PHP 456.66 billion from PHP 346 billion last year.

Domestic interest payments as of end-July amounted to PHP 323.36 billion, while external interest payments stood at PHP 133.3 billion.

During the period, interest payments on local borrowings comprised PHP 217.53 billion for fixed-rate Treasury bonds, PHP 78.24 billion for retail Treasury bonds, PHP 18.68 billion for T-bills, and others (PHP 8.91 billion).

“Rising interest rates and maturing obligations are driving up the government’s debt service bill. However, strong revenue collection and external financing are helping to manage the burden,” Security Bank Corp. Chief Economist Robert Dan J. Roces said in a Viber message.

Elevated interest rates here and abroad continued to drive up interest payments on debt, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

“The stronger peso exchange rate recently could reduce the peso equivalent of foreign debt principal and interest payments,” Mr. Ricafort said in a Viber message.

The local unit closed at PHP 55.995 on Friday, 20.5 centavos stronger than its PHP 56.2 finish on Thursday.

A potential rate cut by the Bangko Sentral ng Pilipinas (BSP) and the US Federal Reserve could help reduce the NG’s interest payments, Mr. Ricafort added.

At its Aug. 15 meeting, the Monetary Board cut the policy rate by 25 basis points (bps) to 6.25% from the over 17-year high of 6.5% previously.

BSP Governor Eli M. Remolona, Jr. earlier said the Monetary Board may cut interest rates by another 25 bps in the fourth quarter. Only two meetings are left this year — Oct. 17 and Dec. 19.

For its part, the Fed is widely expected to begin its easing cycle this week.

The National Government (NG) plans to borrow PHP 630 billion from the domestic market in the third quarter. Broken down, it is looking to raise PHP 260 billion from T-bills and PHP 370 billion via T-bonds in the period.

The NG’s debt stock climbed to a record-high PHP 15.69 trillion as of end-July from PHP 15.48 trillion as of end-June.

This year’s debt service program is set at PHP 2.03 trillion, according to the latest Budget of Expenditures and Sources of Financing.

This article originally appeared on bworldonline.com

Read More Articles About:
Worldwide News Philippine News Rates & Bonds Equities Economy Investment Tips Fine Living

You are leaving Metrobank Wealth Insights

Please be aware that the external site policies may differ from our website Terms And Conditions and Privacy Policy. The next site will be opened in a new browser window or tab.

Cancel Proceed
Get in Touch

For inquiries, please call our Metrobank Contact Center at (02) 88-700-700 (domestic toll-free 1-800-1888-5775) or send an e-mail to customercare@metrobank.com.ph

Metrobank is regulated by the Bangko Sentral ng Pilipinas
Website: https://www.bsp.gov.ph

Quick Links
The Gist Webinars Wealth Manager Explainers
Markets
Currencies Rates & Bonds Equities Economy
Wealth
Investment Tips Fine Living Retirement
Portfolio Picks
Bonds Stocks
Others
Contact Us Privacy Statement Terms of Use
© 2025 Metrobank. All rights reserved.

Read this content. Log in or sign up.

​If you are an investor with us, log in first to your Metrobank Wealth Manager account. ​

If you are not yet a client, we can help you by clicking the SIGN UP button. ​

Login Sign Up