Bayan Muna reps propose debt service moratorium for COVID-19 recovery

Bayan Muna representatives Carlos Isagani Zarate and Neri Colmenares urged the Duterte administration to consider a debt service moratorium with international lenders to fund the country's recovery from the COVID-19 crisis.

They proposed that a moratorium could free up at least a trillion pesos to aid micro, small, and medium enterprises (MSMEs) and support national rehabilitation efforts.

The representatives highlighted that the government is already planning to borrow significant amounts from institutions like the Asian Development Bank and the World Bank.

Zarate expressed concern over the Philippines' existing P7.7 trillion national debt, which translates to P70,000 per Filipino, emphasizing the need to avoid accumulating further debt.

He pointed out that existing funds within the 2020 national budget, such as contingency and disaster relief funds, could be utilized, but a moratorium would be preferable if the pandemic's impact is prolonged.

Colmenares noted that over P450 billion is allocated for interest payments and P582 billion for principal payments on foreign and domestic debt in the 2020 budget, a total of P1.033 trillion.

He suggested that the realigned funds from a moratorium could also be used to construct disaster-resilient evacuation centers that could serve as quarantine facilities.

The representatives called for other countries severely affected by the pandemic to also consider similar debt relief measures to stimulate their economies.