Palace to take advice of Mahathir cautioning Philippines from getting Chinese loans

March 11, 2019

Malacanang said on Monday it would heed the advice of Malaysian Prime Minister Mahathir Mohamad that the Philippines should be careful from acquiring loans from China.

In a press briefing, Presidential Spokesperson Salvador Panelo said the government's economic team has been studying all the loan agreements that the country has been entering into, including that of China's.

"Of course, we will take his advice. And the economic managers are evaluating all kinds of loans that we are having with the Chinese government," he said.

China has been funding the ongoing P4.37 billion Chico River Pump Irrigation Project, while a loan agreement had been signed in November last year between Manila and Beijing during the visit here of Chinese President Xi Jinping on the P12.2 billion New Centennial Water Sources - Kaliwa Dam Project.

Other projects, such as bridges and railways, are up for possible Chinese funding.

"With respect to the Chico Dam, I think the eco(nomic) managers have already explained that we are not at the disadvantage," Panelo said.

During his visit last week in Manila, in an interview by ANC, Mahathir cautioned the Philippines from getting Chinese loans.

When Mahathir assumed office, his government cancelled or is negotiating some loans with China.

"If you borrow huge sums of money from China, and then you cannot pay, when the person is a borrower he is under the control of the lender. So, we have to be very careful about that," the Malaysian leader said. Celerina Monte/DMS