Debt payments rise as govt uses more funds to cover interest

MANILA, Philippines - Debt payments made by the Philippine government rose in the past nine months against the same period last year as it used more funds to cover interest on loans. Data from the Bureau of the Treasury showed that Manila shelled out P535.7 billion from January to September to partially settle debts. The amount is P4.71 billion higher than the P531 billion paid in the same months last year. Interest payments for the period stood at P234.71, 3.1 percent higher than the interest charges paid in the nine months to September 2007. Principal payments, on the other hand, declined by 2.4 percent to P301 billion. The government has programmed to settle P607.21 billion worth of domestic and foreign debts this year, P5.06 billion lower than the amount earmarked for debt payments in 2007. The Philippines is slated to borrow more from domestic and foreign creditors as the government reverted to the original plan of balancing the budget in 2010 instead of 2008. With revised fiscal projections, the government expects the budget deficit to hit P75 billion this year and P40 billion in 2009. - GMANews.TV