Data from the Bureau of the Treasury showed that the government spent some P597.51 billion to service its debt from January to September, or 1.61 percent lower than the P607.28 billion spent last year.

For the period, the government redeemed some P375.07 billion in principal loans, covering P273.94 billion in domestic obligations and P101.13 billion in foreign loans.

Principal payments in the first nine months of the year were 3.4 percent higher than the P362.73 billion that was paid out a year ago.

The government paid P222.44 billion in interest, including P131.04 billion on domestic obligations and P91.4 billion on offshore borrowings.

Interest payments for the January to September period was 9 percent lower than the P244.55 billion recorded last year as the government’s liability management program, especially the debt swaps, led to lower financing costs.

The government conducted three bond exchanges so far this year, aimed at reducing foreign exchange-related risks and to prevent bunching up of maturities.

By the end of its term in 2016, the Aquino administration intends to reduce the debt-to-gross domestic product (GDP) ratio to 47 percent from about 55 percent this year. Last year the debt-to GDP ratio was placed at 55.4 percent.

The average of debt-to-GDP ratio in Southeast Asia is 33 percent.

As of end-July, the national government’s debt stock stood at P4.75 trillion, P64 billion lower than the June level mainly as a result of lower foreign and domestic borrowings.