THE country’s debt service burden rose by 4.8 percent to $6.21 billion in the first five months of the year from $5.93 billion a year earlier, preliminary central bank data showed.
The rise was driven by principal payments, which climbed to $3.0 billion from $2.65 billion year on year. Interest payments, on the other hand, dropped to $3.2 billion from $3.3 billion.
The debt service burden covers principal and interest payments on medium- to long-term credits, including those from the International Monetary Fund and new money facilities.
It also includes interest payments on banks’ and nonbanks’ short-term liabilities but excludes principal payments on such obligations and prepayments for future foreign loan maturities.
SM Investment Corp. economist Robert Dan Roces said the increase in debt service largely reflects “scheduled repayments, not financial stress.”
“More debt matured during the period, pushing principal payments higher, while interest payments declined,” he said.
“With ample reserves and steady foreign currency inflows, the country remains well-positioned to meet its external obligations,” he added.
External debt rose to $147.35 billion in end-March 2026 from $146.74 billion three months earlier.
Public sector external debt alone totaled $95.66 billion, up from $91.54 billion, while private sector debt fell to $51.7 billion from $55.2 billion.
As a share of gross domestic product, external debt dropped to 30 percent from 31.5 percent in the previous quarter.
