The Philippine government’s debt servicing surged in January as interest and amortization payments increased, according to Bureau of the Treasury (BTr) data over the weekend.

Preliminary BTr data showed that the government paid P158.898 billion for debt servicing in January, 232.20 percent higher than the P47.831 billion paid in the same month in 2023.

In January, the bulk, or 53.29 percent, of debt servicing went to overall amortization payments, while the rest went to interest payments. Amortization payments surged to P84.677 billion during the month from P861 million in January 2023.

The BTr settled P138 million with domestic lenders and P84.539 billion with foreign creditors.

Meanwhile, interest payments increased by 58.01 percent to P74.221 billion during the month from P46.970 billion in January 2023.

When broken down, interest paid on domestic debt increased by 83.22 percent to P48.823 billion in January from P26.647 billion a year ago.

Interest on foreign debt likewise increased by 24.97 percent to P25.398 billion in January from P20.323 billion a year ago.

Domestic debt consisted of P40.926 billion in fixed-rate Treasury bonds, P3.575 billion in retail Treasury bonds, P2.597 billion in Treasury bills, and P1.725 billion in other bills.

Every week, the Treasury auctions government securities to raise funds for public initiatives. These securities include short-term T-bills, with durations of 91, 182, and 364 days, and long-term T-bonds, which can mature over a period exceeding 20 years.

For 2024, the government plans to allocate P670.47 billion for interest payments, with a 70:30 distribution favoring domestic creditors.

The government seeks to enhance its revenue administration and eliminate unnecessary expenditures to strengthen its fiscal position and reduce the debt burden.

As of the end of January, the country’s outstanding debt stands at a historic high of P14.79 trillion.