Metro Manila (CNN Philippines, August 1) — The Philippine government is paying an additional ₱96 billion for its foreign loans due to foreign exchange movements last year, Senator Sherwin Gatchalian pointed out on Tuesday.
The Congressional Oversight Committee looked into the official development assistance received by the Philippines from other countries.
\”Because of the depreciation of the peso, we have to add ₱96 billion in terms of additional payments […] Seems to me that we already lost ₱ 96 billion because of forex,\” Gatchalian said during the hearing.
From ₱50.97 in January 2022, the peso closed at ₱56.12 to the dollar by the end of the year.
The national government’s total outstanding debt climbed to ₱14.15 trillion by the end of June this year. Of this, the country’s external debt amounted to ₱4.45 trillion.
The Bureau of Treasury said more than 75% of the country’s loans are domestically funded, and it plans to increase this to 80% in the next few years.
\”There’s really a conscious effort on the part of the national government to prioritize domestic funding sources,\” said Deputy Treasurer Erwin Sta. Ana.
Meanwhile, the Department of Transportation (DOTr) explained that external loans can be paid in the next 10 years or more.
\”So the reference point for the forex loss or gain is forex today versus projected forex for example in 10,11,12 years,\” said DOTr Undersecretary Timothy John Batan. \”There’s always a possibility of the gain depending on how the economy essentially is when we start repaying.\”
However, Senate Minority Leader Koko Pimentel noted that the country also has to pay additional commitment fees or penalties for every delay in projects funded by foreign loans.
\”Pumasok tayo sa ganitong kontrata, ganito kahalaga, hindi umaandar, bayad lang tayo nang bayad. So parang money grows on trees dito sa Republika ng Pilipinas e. Tuwang tuwa tayong magtapon ng pera e,\” he said.
[Translation: We entered into such a contract with this amount, but nothing is happening. Hence, we just keep on paying. It seemed that money grows on trees here in the Republic of the Philippines. We always like to waste our money.]
The lawmakers are now asking the executive department for data on how much it has already paid for penalties on delayed foreign loan-funded projects.
