Bulk of the debt service in January was spent for principal payments amounting to P27.46 billion. Of the amount, P82.9 billion was spent for domestic maturing obligations while the remaining balance of P1.53 billion was paid to foreign creditors.
Meanwhile, interest payments by the government during the month reached P50.28 billion. Of which, P28.6 billion was used to payoff domestic debts and the remaining P21.67 billion was spent for settlement of some foreign debts.
Debt servicing refers to payments of both interest and principal. The debt service burden excludes actual outflows such as rescheduling or refinancing of existing debt and conversion of debt to equity.
In 2011, the government debt payments amounted to P722.75 billion, an increase of 5 percent compared with P689.799 billion in the previous year.
Bulk of the debt service last year was spent for principal payments amounting to P443.754 billion, while interest payments reached P278.996 billion.
In a separate data from the finance department showed that the government borrowed R82.01 billion in January, more than threefold increase compared with P25.25 billion it incurred in the same month last year.
Of the total borrowing, external borrowings hit P66.73 billion, higher by 22 percent compared with P55.76 billion inflow a year ago. The biggest contributor to offshore debt was the issuance of global bonds that accounted for R66.03 billion of new borrowings.
On the other hand, domestic borrowings reached P15.28 billion in January, a reversal of the P30.51 billion gross payment it had in the same month last year. These new borrowings from local investors were mainly composed of fixed rate Treasury bills and bonds.
Finance Secretary Cesar Purisima earlier said the government aims to wean itself of costly foreign debt by raising the domestic component of its yearly borrowing plan, possibly ending 2012 with a borrowing mix of 80:20 percent in favor of local debt.
In January, the government sold $1.5 billion of 2037 global bonds, filling two-thirds of its total 2012 foreign debt requirement of $2.25 billion.
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