Palace rejects deferring foreign debt payments

The Philippine government has rejected proposals to defer foreign debt payments to allocate more funds for the COVID-19 response.

Presidential Spokesperson Harry Roque stated that such a move could trigger cross-default provisions, leading to default on all loans and negative impacts on the country's credit standing.

Finance Secretary Carlos Dominguez III also dismissed the idea of a debt moratorium, emphasizing the importance of honoring financial obligations for maintaining investor confidence in the economy.

Senator Imee Marcos had proposed a one-year postponement of interest payments to fund social amelioration programs during the crisis.