BusinessMirror

DEBT PAYMENTS SOAR TO P834.3B AT END-JULY

- By Bernadette D. Nicolas @Bnicolasbm

THE national government’s debt payments as of endjuly reached P834.33 billion, rising by over a third compared to the same period in 2020.

As amortizati­on payments continued to outpace interest payments, the government’s debt service bill during the seven-month period ended up 37.2 percent higher than last year’s P608.26 billion.

Cumulative amortizati­on payments from January to July this year ballooned to P566.77 billion, surging by 56.9 percent from P361.2 billion last year.

Likewise, interest payments rose by 8.3 percent year-on-year to P267.56 billion from P247.06 billion.

Amortizati­on refers to the repayment of loan principal over time, while interest payment refers to a payment determined by the interest rate of an account.

For July alone, state debt payments slightly fell to P60.54 billion this year from P60.91 in the same month in 2020.

Amortizati­on payments in July slid by 1.05 percent to 1.51 billion from P1.53 billion last year.

On the other hand, interest payments went down to P59.03 billion from P59.38 billion.

This year, the government has programmed P1.29 trillion for its debt service, with P758.32 billion allotted for principal amortizati­on and P531.55 billion in interest payments.

In 2020, the government spent P962.47 billion to service its debts as it needed to keep up with more financial obligation­s to fund its war chest against the Covid-19 pandemic.

As of end-july this year, the national government’s outstandin­g debt has already piled up to a new record high of P11.61 trillion, swelling by 26.7 percent from P9.16 trillion a year ago.

 ?? ROY DOMINGO ?? THE first train set for the Metro Rail Transit Line 7 (MRT-7) was installed at the weekend, and San Miguel Corp. said it is now working “round the clock” to meet its timeline for a test run by 2022. The threecar train set from South Korea was put along the tracks of the MRT-7'S Tandang Sora station in Commonweal­th Avenue, Quezon City.
ROY DOMINGO THE first train set for the Metro Rail Transit Line 7 (MRT-7) was installed at the weekend, and San Miguel Corp. said it is now working “round the clock” to meet its timeline for a test run by 2022. The threecar train set from South Korea was put along the tracks of the MRT-7'S Tandang Sora station in Commonweal­th Avenue, Quezon City.
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