Tatakbo ito ng 2 years! Duterte say govt could end up borrowing ‘trillions’ in COVID war
"Ang Japan is 300 trillion ang utang. Pero gumagana sila kasi ang ekonomiya nila --- they have the capacity to pay. Maski trillion-trillion, kumikita naman sila ng trillion-trillion rin," he said.
President Rodrigo Duterte warned the health and crisis brought about by the pandemic could last for two years.
“Do not tempt the gods. Kasi pagka hindi ito naayos, ang COVID, mapurnada talaga tayong lahat. Huwag ninyong madaliin. Sabihin ko sa inyo. Think of the COVID ganitong sitwasyon, tatakbo ito ng two years,” said Duterte in late night press conference April 8.
Duterte said a protracted lockdown, which has caused the economy to ground to halt, could force the government to borrow “trillions” to feed indigent Filipinos while keeping them at home to contain the virus.
“We are looking for a way how government can help. ‘Pag mag-asa lang tayo na we are… Marunong tayong maghiram at marunong tayong magbayad on time. So, magkano utang natin? Well, it could be — it could go into trillions,” he said.
He does not see this as a problem considering that there were banks willing to lend his government money with its good credit rating (“BBB+” halos “A” na) and other countries, like Japan, had bigger loans than the Philippines.
“Ang Japan is 300 trillion ang utang. Pero gumagana sila kasi ang ekonomiya nila — they have the capacity to pay. Maski trillion-trillion, kumikita naman sila ng trillion-trillion rin,” he said.
Finance Secretary Sonny Dominguez said the government would borrow $5.6 billion from the World Bank and Asian Development Bank if it does not generate enough revenues this year and it has exhausted all the budget allocations it could align for the COVID warchest.