Drilon backs gov’t taking out loans to fund COVID-19 response

Senate Minority Leader Franklin Drilon on Thursday said the government should not hold back in availing more loans to fund the COVID-19 response.

"Hindi baleng mangutang tayo at mawala 'yung ating credit rating pero kailangan mangutang tayo para mabigyan natin ng stimulus ang ating mga kababayan at maibalik ang sigla ng ekonomiya," Drilon said in a radio interview.

He said the executive leaders must take advantage of the Philippines' good credit rating to access international financing programs.

"Our present financial standing is not sufficient for us to cope with the pandemic situation. The COVID-19 pandemic is far from over," Drilon said.

"Ang problema ay ang willingness ng gobyerno lalo na ang Department of Finance para dagdagan ang ating utang kasi wala tayong choice, walang collection. Kailangan ibalik ang ating ekonomiya para magkaroon ng collection ang BIR (Bureau of Internal Revenue)," he added.

The Palace said on Thursday that the Philippine government has secured at least $5.8 billion in loans for COVID-19 response as of June 4.

In President Rodrigo Duterte's report to Congress, he said the government raised a total of $6.4 billion in budgetary support financing as of June 11.

Of this figure, around $6.2 billion comprise “newly contracted loans” from the World Bank, Asian Development Bank and the Asian Infrastructure Investment Bank, and the dual-tranche issuance of US dollar-denominated global bonds.

Last week, the DOF said the country aims to borrow at least P400 billion to support the COVID-19 economic recovery efforts. — BM, GMA News