Atienza allays foreign debt trap fears as PH ‘builds, builds, builds’

BUHAY Rep. Lito Atienza on Independence Day allayed fears that the Philippines might get entangled in a foreign debt trap as the government embarks on an P8-trillion economic infrastructure-spending binge to make up for a massive backlog.

“We do not see the (Philippine) government getting into a situation wherein it incurs too much external debt that suddenly becomes difficult

or impossible to repay,” Atienza, the senior deputy minority leader, said.

Vice President Leni Robredo has warned that the Philippines might fall into a debt trap if the government borrows money indiscriminately, especially from China. The funds on sensible and beneficial

“We have no problem with borrowing money, regardless whether it is from Japan, China or South Korea, as long as the government spends projects,” Atienza said.

He added that the growth in turn would translate to a larger economic asset from which government is bound to collect incremental tax income.

He said growth in turn would translate to a larger economic asset from which government is bound to collect incremental tax income.

“Surely the administration will not obtain a project loan from a foreign government at a higher interest rate, if the same credit can be procured elsewhere at a lesser rate,” Atienza added.

“We are also counting on the National Economic Development Authority to rigorously screen and ascertain the feasibility of every project before it is approved for possible foreign funding,” he noted.