No debt trap will happen to the country with respect
to our debts to China.
In a media forum composed of Finance officials made
the assurance that the country would not fall into China’s infamous debt trap,
and no Philippine prized possession with respect to our resources will be
surrendered to China if a default happens.
Finance Assistant Secretary Antonio Lambino said
interest rates of the Philippines' loans from China, which are primarily for
infrastructure ( BUILD BUILD BUILD) projects, range from only 2 to 3 percent.
 |
| BSP deputy governor Diwa Guinigundo, Finance spox Antonio Lambino, businessman George Siy, and columnist Wilson Flores speak in a forum addressing “false” claims in Philippines-China ties (photo credit to owner) |
That
is considerably small explains Lambino, compared to the gains Filipinos stand
to get once all the infrastructure projects are done, as they are seen to give
the country better transportation systems and wider business centers in the
near future.
“Ang
atin pong istratehiya ay talagang pagandahin ang ating (Our strategy is to
really improve our) infrastructure program for logistics, for productivity, for
efficiency not only because it’s good for the economy, it’s also because it’s
good for the Filipino families,” said Lambino.
As
per the Bangko Sentral ng Pilipinas Deputy Governor Diwa Guinigundo, the
Philippines has about $980 million in loans from China as of the end of 2018.
But Deputy
Governor expressed confidence that the Philippines’ external debt, totaling $79
billion, is “very, very manageable,” citing the country’s good credit rating.
S&P
Global on April 30 raised the Philippines’ score to BBB+, one notch below the
minimum “A” rating over the country’s above-average economic growth, a healthy
external position and sustainable public finances.
“Our
credit rating captures the essence of our economic reality…and what kind of
management capacity can we show to the world,” said Guinigundo. “On the basis
of these, we have experienced periodic, successive, and continuous upgrade
since 2012 and 2013.”
The
official assured ( as Malacanang kept on explaining the same) that there is no
collateral and commitment of national patrimony to support the loans.
“All
I can say is that on the basis of those loans contracted, there is no
collaterals there and if there are issues between two parties, including the
Philippines, all of these are subject to arbitration,” he said.
Deputy
Gov. Guinigundo noted that President Rodrigo Roa Duterte is doing “sensible
economic management” on how he deals with China as regards to the unresolved
dispute over the South China Sea.
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Report from ABS-CBN News
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