PHL is not in danger of ‘drowning in Chinese debt’ —Dominguez

CLARK, Pampanga — Claims that the Philippines is in danger of drowning in Chinese debt are unfounded, Finance Secretary Carlos Dominguez III said Monday.

“There is no danger for us being drowned from Chinese debt,” Dominguez said in a speech before the business community during the Sulong Pilipinas 2018.

Citing data from the DOF International Finance Group, Dominguez said the loan from China accounts for only 0.11 percent of the country’s total debt.

“We borrow with great prudence, aware that it is the taxpayer who ultimately pays for the debt,” Dominguez said.

“Thus we take care that the funds we borrow are wisely used and produce sufficient economic benefits to make the debt service easier down the road,” he said.

Under the Duterte administration, the Philippines has so far finalized two loan agreements with China:

• $72.49-million for the Chico River Irrigation project

• P18.724-billion New Centennial Water Source-Kaliwa Dam Project

During Chinese President Xi Jinping’s state visit last Tuesday, China and the Philippines signed and exchanged 29 documents. —VDS, GMA News