The country’s debt service bill reached P1.23 trillion in the first semester, largely on amortization payments, the Bureau of the Treasury (BTr) reported.
Data from the Treasury showed that the government jacked up its debt payments by nearly 60 percent to P1.23 trillion in January to June, from the P768.11 billion it paid in the same period last year.
The end-June figure was 61 percent of the P2.01-trillion debt service program, as set in the latest Budget of Expenditures and Sources of Financing document.
Treasury data showed that debt service was driven by an increase in amortization or the settlement of principal, which more than doubled to P743 billion from P353.29 billion in the same period in 2025.
About 85 percent of the total amortization at P630.91 billion was paid to domestic sources while the remaining P112.1 billion in principal payments was made to external creditors.
On the other hand, interest payments surged by 16.6 percent to P483.69 billion as of end-June from P414.82 billion the year prior.
Roughly 75 percent of the interest payments at P360.72 billion were paid to domestic creditors.
Broken down, the government paid interest for P242.16 billion in fixed-rate Treasury bonds, P87.5 billion in retail T-bonds and P25.15 billion in Treasury bills.
The government settled P122.97 billion in interest owed to foreign financiers in the first half.
Spending on amortization goes to returning the loan principal, while interest payments go to complying with interest obligations.
In June alone, the government settled P77.22 billion in debt service, up by 18.5 percent from P65.14 billion in the same month last year.
The Philippine government’s outstanding debt is at a record P19.07 trillion as of end-June, surpassing its year-end projection of P19.06 trillion.