Manila Bulletin
Gov't not inclined to seek debt moratorium to fund COVID-19 response
The Philippine government is not considering a debt moratorium to fund its COVID-19 response, citing potential severe repercussions.
Presidential Spokesperson Harry Roque explained that a default on one loan would trigger cross-default provisions, leading to simultaneous demands from all creditors.
Finance Secretary Carlos Dominguez III has also rejected the idea of a debt moratorium, affirming the government's commitment to honoring its financial obligations.
Roque assured the public that the government currently has sufficient funds for the COVID-19 response.
Should funds become insufficient, the government is prepared to sell state assets before resorting to defaulting on its obligations.
President Duterte has expressed willingness to halt infrastructure projects if more funds are needed to support the pandemic response, prioritizing the health and needs of the Filipino people.
The potential sale of assets like the Philippine International Convention Center and the Cultural Center of the Philippines was mentioned to emphasize the administration's commitment to public health.
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News Sources
See how different news organizations are covering this story. Below are the original articles from various Philippine news sources that contributed to this summary.
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.
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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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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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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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