Aside from the fact that the biggest chunk was not used specifically for the COVID-19 response, it is the taxpayers who will suffer the most in paying off these debts.
“In an online interview, IBON Foundation Executive director Jose Enrique Africa said that it is not wrong to borrow money if it is a necessity. “Right now, the country needs the loans. Especially since our economy plummeted and there has been a decrease in economic activity. It is a legitimate question to ask, where will we get funding for the response?” he told Bulatlat”
MANILA — It has been more than a year since the country was plagued by the COVID-19 pandemic, and placed under drastic lockdown measures to minimize the spread of the virus. One would think one year is enough for the government to respond to the needs of the nation, but it seems like the country is back to square one with the number of cases at an all-time high.
Certainly, the administration gathered enough loans to fund its pandemic response, but what really has been done to address the health issue?
In an online interview, IBON Foundation Executive director Jose Enrique Africa said that it is not wrong to borrow money if it is a necessity. “Right now, the country needs the loans. Especially since our economy plummeted and there has been a decrease in economic activity. It is a legitimate question to ask, where will we get funding for the response?” he told Bulatlat.
To date, the government acquired 27 loans, worth more than P700 billion (US$15 billion), to aid in its response against COVID-19. However, our research showed that only around P60 billion (US$1.2 billion), or a measly nine percent, was intended for projects which were made to address the health crisis in the country.
The Department of Finance (DoF) categorized the financing agreements into two, budgetary support financing and project loan financing. Africa explained that both types are dedicated to be used for the pandemic response and aid the government in addressing the health crisis. The main difference being, project loans go to a specific program and that program only while the beneficiary for budget support is entirely upon the discretion of the borrower – in this case, the government.
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