A disservice to the country.
Finance Secretary Carlos Dominguez
III some sectors that continue to give a picture of falsehood in
the capacity of the Philippines in repaying its loan obligations to China has
no faith in the capacity of their own country.
Dominguez is replying to the fears
being raised by the detractors and critics of the administration that the
obligation entered by the government will result to the defaulting of its
payment.
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| Finance Secretary Carlos Dominguez III (photo credit to Malacanang) |
“The Philippines has never, never
defaulted on its loans. The Philippines has not done it even in the worst time
and the worst time was right after Marcos,” Dominguez said to
reporters.
The Finance Secretary explains that
the Philippines was cash-trapped, it had never defaulted on payment of its USD2.2
billion obligations in existing loans, recalling the country’s experience with the
Bataan Nuclear Power Plant which was considered a “white elephant.”
“The Philippines has no history of
defaulting on its loans. So why are people saying now that we will default?
They have no faith in the Philippines? I don’t know why people are saying
‘There might be a default.’ That means to say those people have no faith in
their own country,” Dominguez emphasized.
The Philippines will never default on
its loan obligations since there is a law of automatic appropriation. Presidential Decree 1177
mandates automatic automations for debt servicing, which means the Philippines
will always have to pay its debts.
Dominguez assure the public the
country will never fall to a debt trap with China or to any country as the
government pursues its BUILD BUILD BUILD policy.
Our existing laws does not allow for
appropriation or takeover of domestic assets in the event of failure to pay.
The government’s borrowing program,
the finance Secretary further explains that it remains “very conservative in
the sense that we only borrow to invest in projects that will generate economic
gains which are greater than the borrowing cost.”
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