A massive surge in principal payments during the first quarter of 2026 drove the national government’s (NG) total debt service payments to ₱737.4 billion, more than doubling the ₱342 billion recorded in the same period last year.

The latest Bureau of the Treasury (BTr) data showed that the sharp increase was mainly fueled by a spike in amortization payments, while interest payments (IPs) posted more moderate growth.

Amortization accounted for the largest portion of total debt service in the first quarter, representing 63 percent of total.

These payments reached ₱464.3 billion, nearly five times higher than the ₱101 billion paid in the first quarter of 2025.

The surge was driven almost entirely by domestic amortization, which jumped to ₱386.7 billion from just ₱576 million a year ago, largely due to a significant repayment made in February.

Conversely, the NG reduced its amortization payments to external lenders by 22.8 percent to ₱77.5 billion from ₱100.4 billion.

IPs, which accounted for the remaining 37 percent of first-quarter debt obligations, rose 13.3 percent to ₱273.1 billion from ₱241 billion in the same period last year.

Domestic lenders received the bulk of these IPs, totaling ₱211.4 billion for the quarter, up 18.4 percent from ₱178.6 billion a year ago.

Broken down, IPs on fixed-rate treasury bonds (T-bonds) increased by 22 percent to ₱152.2 billion from ₱124.8 billion.

Payments for retail treasury bonds (RTBs) rose to ₱43.8 billion from ₱39.6 billion.

IPs on short-dated treasury bills (T-bills) likewise increased to ₱12.7 billion from ₱12.2 billion.

Further, IPs on the NG’s other domestic obligations climbed to ₱2.7 billion from ₱1.9 billion in the first quarter of 2025.

In contrast, IPs on the NG’s external debt slipped 1.1 percent to ₱61.7 billion in the first quarter of 2026 from ₱62.4 billion during the same period last year.

For March alone, the NG’s debt payments eased 7.8 percent to ₱169.1 billion from the ₱183.4 billion recorded in the same month last year.

The decline was driven by a double-digit drop in amortization, which offset higher interest costs.

Amortization accounted for 43 percent of total debt service during the month, falling by about a quarter to ₱72.7 billion from ₱95.2 billion a year ago.

IPs, which made up the remaining 57 percent of the month’s total obligations, increased to ₱96.4 billion from ₱88.1 billion.

Recall that the NG’s debt service burden surged to a record ₱2.1 trillion in 2025 as the administration of President Ferdinand R. Marcos Jr. grappled with ballooning interest costs that consumed a growing share of the national budget.

Total debt payments last year rose 4.1 percent from ₱2.02 trillion in the previous year.

As of end-March, the NG’s outstanding debt climbed to a fresh record of ₱18.49 trillion as the weakening peso inflated the cost of foreign obligations while local borrowing continued.

This brought NG debt to 65.2 percent of gross domestic product (GDP) by the end of the first quarter, marking the highest ratio in two decades since the 65.7 percent recorded in 2005. In nominal terms, GDP was estimated at ₱28.36 trillion.