The Philippine government's debt service bill for March 2026 decreased by nearly 8% compared to the same month last year, according to the Bureau of the Treasury (BTr). Total payments amounted to P169.09 billion, primarily due to a decline in principal repayments.
In the first quarter of 2026, total debt service reached P737.5 billion, marking a staggering 115.6% increase from the previous year. This surge was largely attributed to significant domestic securities maturing in February.
The first quarter's expenses now account for about 37% of the government's P2.005 trillion allocated for debt servicing this year.
March Debt Breakdown
For March, amortization payments fell by 23.65% to P72.7 billion. Both external and domestic principal repayments decreased, with external amortization dropping by 23.67% to P72.6 billion and domestic repayments easing by 7.24% to P128 million.
In total, amortization for the first quarter reached P464.3 billion, a dramatic 360% increase from P101.022 billion a year earlier.
Interest payments, however, rose by 9.37% to P96.4 billion, driven by a 24.13% increase in domestic interest costs, which reached P79.7 billion. This increase was somewhat offset by a 30% decline in interest paid to foreign creditors, which dropped to P16.676 billion.
Overall, interest expenses for the first three months totaled P273.1 billion, reflecting a 13% rise from the same period in 2025.
Despite the reduction in debt payments in March, the Philippines' outstanding debt reached a record high of P18.49 trillion by the end of the month, nearing the government’s P19.01 trillion cap for 2026.