Finance officials say,PH will never fall into China 'debt trap.'

Finance officials say,PH will never fall into China 'debt trap.'

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. 

What can you say about this?

Share us your thoughts by simply leaving on the comment section below. For more news updates, feel free to visit our site often.

Stay updated with today's relevant news and trends by hitting the LIKE button.

Thanks for dropping by and reading this post.

Report from  ABS-CBN News

Post a Comment