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ADB plays down PH debt trap concerns

/ 05:04 AM May 02, 2019

NADI, Fiji — “Debt trap” fears over foreign financing from development partners like China and Japan should not be a “big concern” as long as borrowings are “sustainable,” a top economist from the Asian Development Bank (ADB) said on Wednesday.

Having debts is “not necessarily a bad idea … if government is meet[ing] a potential demand of the economy and eliminating infrastructure bottlenecks,” chief economist Yasuyuki Sawada said at a press conference on the sidelines of the ADB’s 52nd Annual Meeting.

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Sawada said the Philippine economy was being driven by government investment in public goods, services and infrastructure.

“I think as long as debt is sustainable, this is a very important government initiative we need to support,” he added. —Ben O. de Vera

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TAGS: ADB, China debt trap, PH-China deals, Yasuyuki Sawada
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