DBM Sec. Diokno denies gov't uses territory as collateral for China loans

DBM Sec. Diokno denies gov't uses territory as collateral for China loans

The Duterte administration is making the public know that President Rodrigo Roa Duterte has not entered any deals that is detrimental to the country.

Budget Secretary Benjamin Diokno has categorically denied allegations that the Philippines agreed on loans with China under “onerous conditions.”

DBM Secretary benjamin Diokno (photo credit to owner)

"That's coming from the alarmist group. There's no such thing as onerous conditions. We were smart. We're not like other countries. We don't mortgage our territories for a loan that is as straightforward as a railway system," Diokno 

Filipino think tank IBON Foundation made a statement alleging that the Duterte administration is brokering questionable deals with Beijing. And that the country is “virtually giving up” its sovereignty upon agreement with China’s term.

Diokno, explains that the government only allows loans for projects that would pass the cut-off of 10 percent for economic rate returns.

Diokno, refuted the claim of IBON Foundation, that China requires disputes surrounding the loan agreements to be settled at the China International Economic and Trade Arbitration Commission (CIETAC).

"Usually, when you sign a loan, in case of arbitration, you assign that to a third party. Like, say Singapore, if there's a court there. You do not say it will be resolved by a Chinese court," Diokno said.

China and the Philippines signed 29 agreements in the 2 day State visit by Chinese President Xi Jinping in the Philippines.

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Report from CNN Phils

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  1. There's no back channelling on this deal. There's no giving away of territories. Everything was laid out on those 29 issues in front of Chinas executive and parliamentary representatives in front of Phillippine counterparts. Unlike the previous admin, who spend 16 trips to China which resulted to withdrawal of Philippine naval ships...This only tells us the ingenuity of the DU30s admin...