Debt payments jump to P138 billion

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March 31, 2026 | 12:00am

MANILA, Philippines — The government ramped up its debt service by nearly 30 percent to P138 billion in January amid higher interest and amortization payments.

Latest data from the Bureau of the Treasury showed that the government increased debt payments at the start of the year to P137.67 billion, 29.3 percent higher than the P106.51 billion it paid in the same period last year.

About 93 percent, or P127.82 billion went to interest payments, which jumped by 22 percent from P103.44 billion annually.

Of this, 74 percent or P94.6 billion, were paid to domestic creditors.

Broken down, the government paid interest of P85.4 billion on fixed-rate Treasury bonds, P3.68 billion on Treasury bills and P3.58 billion on retail T-bonds.

The Treasury sells government securities every week to generate funding for public programs and projects.

At the same time, the government settled P33.21 billion in interest owed to foreign lenders in January.

Amortization or the settlement of principal surged by more than four times (374.8 percent) to P9.85 billion from P2.08 billion in January 2024.

The bulk of the amortization payment, amounting to P8.1 billion, was remitted to domestic sources, while P1.76 billion went to external creditors.

As of January, the government has settled 6.9 percent of its programmed total debt service for 2026, totaling a record P2.006 trillion.

For 2026, the government intends to spend P950 billion for interest payments and P1.06 trillion for principal amortization.

The country’s outstanding debt is at a record P18.13 trillion as of end-January, surpassing the previous record-high of P17.71 trillion as of end-December 2025.