Imee Marcos urges gov’t to call for PH debt moratorium

MANILA, Philippines — Calling for a moratorium on the payment of the country’s debts could provide the government over P1 trillion to augment funds for cash aid to individuals and companies affected by the Luzon-wide lockdown, Senator Imee Marcos said.

Marcos, chair of the Senate committee on economic affairs, said that aside from budget realignments and international loans, a debt moratorium could be another measure the Department of Finance (DOF) could adopt to continue funding the government’s social amelioration program.

This as she raised the possibility of another extension of the enhanced community quarantine imposed by the government to contain the spread of COVID-19.

The senator, in a statement, said the budget for interest payments on the country’s debts under the General Appropriations Act (GAA) of 2020 amounts to P451 billion, which she said can be used for cash aid by the government under the Bayanihan Heal As One Act.

Marcos added that off-budget payments of P582 billion principal amortization can also be reserved for cash aid.

The national government, under the Bayanihan to Heal As One Act, earlier set aside P200 billion cash assistance to low-income households affected by the COVID-19 response.

Under the law, some 18 million poor families will be given an emergency cash subsidy, ranging from P5,000 to P8,000 per month for two months.

More cash aid would be needed should the global pandemic worsen and result in extended lockdowns throughout the world, which would continue to limit business operations and people’s means of earning a living, the senator said.

She added that a debt moratorium would be in line with the World Economic Forum’s call for international cooperation in handling the backlash of the COVID-19 crisis.

“Dapat bigyan ng palugit ang mga bansang mas maliit ang ekonomiya at mas mahina ang pamamaraan para sa pagpapagamot ng kanilang mamamayan, lalo na ang mga bansa sa Asya at Africa,” Marcos said.

To date, Philippine health authorities have confirmed 4,648 COVID-19 cases in the country.

Of the number, 297 patients have died while 197 have already recovered from the disease.

President Rodrigo Duterte earlier placed the entire Luzon under an enhanced community quarantine as the number of COVID-19 cases in the country continued to increase. The quarantine became effective on March 17 and was initially set to be lifted on April 13.

The quarantine period, however, has been extended until April 30.