Analyst Heydarian says PHL natural assets as collateral not standard

GMA resident analyst Richard Heydarian on Tuesday opposed the remark of presidential spokesperson Salvador Panelo that allowing Philippines' natural assets to be a collateral in the P3.6-billion loan agreement with China is a standard provision in such contracts.

Heydarian told GMA News' Unang Balita that there is no such provision in loan agreements with other nations.

"There's nothing standard kasi 'pag tiningnan mo 'yung ating projects with Japan, with international countries, wala namang ganyang probisyon. This is actually very unique to China," Heydarian said.

"'Yung isa pong nakakabahala sa China, China is not a member nu'ng tinatawag na Paris Club of creditor nations. Ito 'yung mga bansa na nagbibigay ng utang sa mga developing countries around the world and they fall [under] a very strict standard...," he added.

Heydarian pointed out that the Philippines should still be cautious with its loan agreements with the Asian superpower.

"Kahit maliit ang investments ng China relative sa GDP [gross domestic product] natin, even though hindi tayo ma-debt trap, 'yung mga limited investments ng China are gonna be so problematic na merong negative implication sa ating bansa," he said.

For Panelo, there is nothing wrong with the provision as he expressed confidence that the Philippines will be able to pay off the loan.

Over the weekend, Supreme Court Senior Associate Justice Antonio Carpio warned that in case of default, China may seize patrimonial assets and assets dedicated to commercial use of the Philippine government.

Carpio said these assets include the rich gas fields in the Reed Bank, which is part of the country's exclusive economic zone in the South China Sea. —Anna Felicia Bajo/KG, GMA News