MANILA – The Philippines will not fall under a China financial obligation trap because Manila is an “expert in bad loans,” Foreign Affairs Secretary Teodoro Locsin Jr. stated Saturday.
“Pagdating sa loans, they constantly ask me to be careful. My response to that is we are the professionals in the bad loans,” Locsin told radio DZMM.
“Kasi during the time of Marcos, the World Bank, the IMF (International Monetary Fund), and the New York Banking System lent billions of dollars to Marcos and his cronies, ninakaw nila. So the economy started to collapse.”
This, after the federal government was advised to check out the “fine print”of its loan offers with China and other foreign governments to prevent falling under a financial obligation trap.
Financing Assistant Secretary Tony Lambino stated that no public properties will be utilized as “any sort of payment” in case of failure to adhere to the borrowing terms.
Locsin likewise safeguarded the Duterte administration’s choice to sign a loan contract with China rather of Japan, which offers a lower interest rate.
“Japan is much better since their interest rate is near no. There are projects which Japan will say no we’re not interested. So then you go to China,” he stated.
“The Japanese rate of interest are really low which belongs to their issues in their economy so there’s not that much need for credit.”
Locsin stated that if the Philippines wishes to fall into a debt trap, it needs to deal with a western bank.
“The West understands how to ruin countries and sanay sila. Ang know-how ng western banking is how to screw a country. While the Chinese are still searching for buddies, as long as you’re paid and you don’t steal the loan, you’re still all right,” he stated.
“If you desire actually a financial obligation trap, attempt a western bank.”
This content was originally published here.