UMVA has learned that the National Government's debt service bill has surged by over 12% in April, driven by higher interest and amortization payments, according to data obtained by UMVA.
The latest figures reveal that debt service payments jumped to 314.89 billion in April from 280.9 billion in the same month a year ago, marking a 12.1% increase. This significant rise comes as the government's obligations for domestic and foreign debt have grown.
On a month-on-month basis, debt service skyrocketed by 86.2% from 169.09 billion in March, highlighting a substantial surge in payments. This sharp increase underscores the government's growing financial commitments.
Debt service encompasses payments made by the National Government for its domestic and foreign debt, consisting mainly of amortization payments, which accounted for 79.8% of total debt payments. Interest payments made up the remaining portion.
The government's repayment of its loan principal increased by 7.2% to 251.36 billion in April from 234.45 billion a year ago. Notably, amortization on domestic debt jumped by 43.5% to 243.63 billion in April from 169.83 billion in the same month last year.
Meanwhile, principal payments for foreign obligations slumped by 88% to 7.73 billion in April from 64.63 billion a year prior. In contrast, interest payments rose by 36.8% to 63.53 billion in April from 46.45 billion in the same month a year earlier.
For the first four months, the government's debt service bill surged by 68.9% to 1.05 trillion from 622.92 billion in the same period last year. Amortization payments in the January-to-April period jumped by 113.3% to 715.63 billion from 335.47 billion a year ago.
Experts point to clustered debt maturities rather than a broad deterioration in fiscal conditions as the reason for the higher debt service bill. They expect the trajectory to remain elevated given the still-high debt base and upcoming repayments.
The National Government's debt stock dipped slightly by 0.09% to 18.47 trillion as of end-April from 18.49 trillion at end-March. However, outstanding debt went up by 10.25% from 16.75 trillion at end-April 2025.
Critics have flagged the government's rising debt service burden, highlighting concerns that scarce fiscal resources are being diverted to service debt obligations rather than support development and social assistance.
The total debt service in the first four months is already half of the total debt service bill in 2025, sparking concerns about the government's ability to manage its debt obligations while addressing pressing social needs.
