Author Topic: Philippines 'extra careful' with China loans – NEDA  (Read 574 times)

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Philippines 'extra careful' with China loans – NEDA
« on: August 11, 2018, 11:22:29 AM »
Philippines 'extra careful' with China loans – NEDA
Socioeconomic Planning Secretary Ernesto Pernia says he is well-aware of the experiences of countries like Sri Lanka which fell into Beijing's debt-trap diplomacy

Ralf Rivas
Published 4:30 PM, June 27, 2018
Updated 4:30 PM, June 27, 2018

https://www.rappler.com/business/205903-philippine-government-extra-careful-china-loans-neda

MANILA, Philippines– The government is "extra careful" not to fall into the Chinese debt trap, said Socioeconomic Planning Secretary Ernesto Pernia on Wednesday, June 27.

"Given the various experiences already felt by the other countries that have already dealt with China, we are more cautious," said Pernia, the director-general of the National Economic and Development Authority (NEDA).

The socioeconomic planning chief was reacting to recent news reports underscoring how a port in Sri Lanka was taken over by China because the former could no longer pay for it.

Sri Lanka pushed through with the $1-billion project despite feasibility studies concluding that it would not work.

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Pernia said only one China-funded infrastructure project has been signed and started.

Beijing has loaned the Philippine government P3.14 billion for the Chico River Pump Irrigation Project. The project drew flak since the loan carried an interest of 2% a year and will mature in 20 years. (READ: Locals protest Duterte admin's Chico River project)

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