DEBT payments by the national government surged in the first half due to higher amortization expenses, data from the Bureau of the Treasury showed.

At P1.28 trillion, debt servicing for January–June was significantly higher than the P907.9 billion recorded in the same period last year.

Amortizations accounted for the bulk at P905.56 billion, rising from the year-earlier P625.47 billion.

The remaining P377.23 billion comprised interest payments, which were also higher than the P282.46 billion posted in the first half of 2023.

Local creditors accounted for almost all the interest expenses at P268.04 billion, which rose from P192.88 billion a year earlier.

This comprised fixed-rate Treasury bonds (P170.49 billion), retail T-bonds (P74.66 billion) and T-bills (P15.78 billion).

Foreign interest payments, meanwhile, surged to P109.19 billion from P89.57 billion a year earlier.

As for amortization, P757.43 billion involved domestic payments, while P148.13 billion went to foreign creditors.

Debt payments in June alone totaled P66.076 billion, 25.3 percent lower than the P88.401 billion recorded a year ago and also down from May's P68.98 billion.

Interest payments accounted for the bulk at P55.64 billion, up from the year-earlier P52.88 billion but down from P61.09 billion in May.

Amortization's share was just P10.43 billion, markedly lower than the P35.52 billion in June last year but slightly higher than May 2024's P7.88 billion.

The national government's outstanding debt ballooned to a new record high of P15.48 trillion in June.

A total of P135.90 billion was added to the debt tally from May's P15.35 trillion and the count was also P1.3 trillion higher than year-earlier P14.15 trillion.

Of the total debt stock, 31.71 percent was borrowed abroad, while 68.29 percent was sourced domestically.