Manila Bulletin
Marcos: Even Pope Francis has joined the call for debt service moratorium
Finance Secretary Carlos Dominguez III rejected Senator Imee Marcos's proposal for a debt payment moratorium to fund COVID-19 aid, deeming it "narrow-sighted" and potentially damaging to the Philippines' international credibility.
Marcos countered that Pope Francis, rich countries, and major lending institutions support debt moratoriums during global crises, a stance she finds diametrically opposed to Dominguez's.
She argued that a delay in payments is not mendicancy and that funds could be reallocated to social amelioration programs.
Presidential spokesperson Harry Roque explained that deferring payments could trigger a cross-default, compelling all lenders to demand immediate repayment.
Roque assured that the government has sufficient funds for the crisis, suggesting asset sales before defaulting on obligations.
Marcos clarified that international financial institutions like the IMF, World Bank, and ADB have called for debt moratoriums for 75 countries, including the Philippines, and have eased lending conditions.
She expressed readiness to explain her proposal's tenability to Dominguez.
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Senator Imee Marcos reiterated her call for the government to implement a debt moratorium, emphasizing that the real enemy is COVID-19, not the proposed measure.
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Senator Imee Marcos proposed a temporary suspension of the Philippines' debt payments to allocate funds for cash aid to individuals and companies affected by the enhanced community quarantine due to the COVID-19 pandemic.
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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.
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The Philippine government is not considering a debt moratorium to fund its COVID-19 response, citing potential severe repercussions.
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The World Bank has observed significant willingness from official bilateral creditors, including the G7 and G20 major economies, to suspend debt payments for the world's poorest nations.
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