Palace: Debt moratorium not an option in boosting COVID-19 response

MANILA, Philippines — The Philippine government is not considering debt moratorium in augmenting funds for its coronavirus disease (COVID-19) response, Malacañang said Thursday.

Presidential spokesperson Harry Roque said the government has enough funds to address the health crisis.

“Hindi po yan opsyon na kinukunsidera ng ating pamahalaan sa ngayon dahil mas malaki po ang magiging repercussion nyan,” Roque said in a virtual briefing.

(That is not being considered by the government right now since it will have bigger repercussions.)

“Pag tayo nag-default sa isang pagkakautang natin, magdedefault po tayo sa lahat ng pagkakautang natin. And mas madugo po ang mangyayari dyan kung lahat po ng ating pinagkakautangan ay sisingilin tayo ng sabay sabay,” he explained.

(If we default one debt, we will default all of our debts. It will be bloodier if our creditors charge us all at the same time.)

Senate committee chair on economic affairs Senator Imee Marcos earlier suggested a moratorium on the payment of the country’s debts which she said could augment over P1 trillion for those affected by the pandemic.

The Department of Finance (DOF), however, rejected the proposal saying it will “never” be part of the government’s crisis response measures.

“Ngayon naman po, sapat naman po ang pondo ng gobyerno. At kung hindi po sapat yan, magbebenta muna ng ari arian ang gobyerno bago po tayo magdefault sa ating mga obligasyon,” Roque said.

(Right now, our funds are sufficient. If not, we will sell government assets before defaulting our obligations.)

President Rodrigo Duterte, in an earlier televised address, said he would order the sale of government assets should funding for efforts against COVID-19 be exhausted.

/MUF