THE national government reduced its debt payments in August compared to a year ago, Bureau of the Treasury data showed.

At P186.22 billion, debt servicing for the month was 1.5 percent lower than the year-earlier P189.03 billion. It was, however, significantly higher than the P81.17 billion recorded in July.

Amortization accounted for the bulk of debt payments at P133.44 billion, down from P146.36 billion in the same month last year but again markedly higher than July's P1.74 billion.

The remaining P52.78 billion comprised interest payments, rising from the P42.67 billion posted in August last year but significantly lower than the P79.43 billion seen this July.

Local creditors again accounted for almost all interest payments at P39.36 billion. This was higher than the P29.54 billion in August last year but lower than July's P55.32 billion.

It comprised fixed rate Treasury bonds (P18.7 billion), retail T-bonds (P16.87 billion), and T-bills (P3.74 billion).

Foreign interest payments, meanwhile, rose to P13.42 billion in August from P13.132 billion last year. It was, however, lower than July's P24.112 billion.

For amortization, P122.034 billion was allocated for domestic payments while P11.4 billion went to foreign payments.

Year to date, government debt payments were 33.5 percent higher at P1.55 trillion compared to January-August 2023's P1.16 trillion.

The Treasury earlier this month reported that the national government's outstanding debt had edged down in August as the peso strengthened and following payments for foreign obligations.

At P15.55 trillion, the amount was 0.9 percent lower compared to P15.69 trillion recorded at the end of July.

Domestic debt continued to account for the bulk of the overall debt stock at 69.4 percent. The remaining 30.6 percent consisted of external obligations.