The government incurred lower interest payments for state debts at P48.4 billion in February from P104.4 billion in January based on data from the Bureau of the Treasury.
Payments for domestic and external debts both declined, with a notable decrease in the latter from P32.15 billion to P6.38 billion.
Data for February’s interest payments for foreign loans came after the peso appreciated to P57.990 in end-February from P58.375 in January, according to the Bankers Association of the Philippines.
Meanwhile, payments for domestic debt decreased from P72.29 billion to P42.07 billion.
Breaking them down, payments for fixed-rate Treasury bonds declined to P20.7 billion from P63.7 billion.
However, obligations for retail Treasury bonds surged to P16.9 billion from P3.6 billion.
Similarly, payments for Treasury bills rose to P4.4 billion from P3.2 billion.
Given those figures, the total interest payments from January to February stood at P152.88 billion, higher than the P122.05 billion recorded in the same period last year.
Sun Life Investment Management and Trust Corp reported the peso-US dollar exchange rate might range from P58 to P61 per dollar this year amid global economic uncertainties from tariff threats on imports to the United States under the Trump administration.
In the past three months, banks’ data show the peso already appreciated against the US dollar by an average 2.47 percent amid changing remarks from Trump on US tariffs.
To minimize higher debt payments, the government will continue to rely on domestic fund sources at 80 percent of the total loan program.
The government plans to borrow a total of P2.55 trillion this year.