Debt service payments surged in April 2025, led by higher amortization, pushing year-to-date outlays past the P1 trillion mark.
The latest Treasury data showed that the government's debt service payments rose sharply in April, reflecting heavier principal repayments amid clustered debt maturities and a still-high debt stock.
Total debt service expenditures reached P314.89 billion in April, up 12.1% from P280.9 billion a year earlier and surging 86.2% from the previous month's P169.09 billion. Amortization payments comprised 79.8% of the total, climbing 7.2% year-on-year to P251.36 billion. The increase was driven mainly by a 43.5% jump in domestic debt amortization to P243.63 billion, while foreign principal payments plummeted 88% to P7.73 billion.
Interest payments rose 36.8% to P63.53 billion, with domestic interest climbing 40.8% to P42.89 billion-driven by fixed-rate Treasury bonds (P33.11 billion), Treasury bills (P4.36 billion), and retail Treasury bonds (P3.56 billion). Foreign interest increased 29.1% to P20.63 billion. For the January-to-April period, total debt service rose to P1.05 trillion, with amortization jumping 113.3% to P715.63 billion and interest up 17.1% to P336.66 billion. The debt stock slightly declined to P18.47 trillion by end-April.
Economists noted that the elevated debt service burden, though lumpy due to maturity schedules, remains a concern as it diverts scarce resources from development, especially amid inflationary pressures from geopolitical events
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