Bayan Muna slams Palace refusal to stop debt payment

By Chocolate Moose Fernandez

Manila, Philippines- Bayan Muna party list Rep. Teddy Casiño slammed President Gloria Macapagal-Arroyo for honoring fraudulent debts at the expense of the general public and Filipino taxpayers.

In a press statement emailed to The Pamalakaya Times, the activist lawmaker decried reports that the Macapagal-Arroyo government spent a total of P549.016 billion to service its debt from January to September this year.

The amount, according to Casino is two percent higher than the P537.352 billion it released last year for the same purpose. Some P235.283B of the total went to interest payments, slightly higher than last year’s P234.706 billion.

“After the devastation caused by typhoons Ondoy and Pepeng worsened by the lack of government preparedness, it is shocking that the Arroyo administration still refuses to declare a moratorium on debt payments. These so-called ‘financial obligations” are nothing compared to government’s obligations to the Filipino people, millions of whom are worse off than they were previously because of the calamities,” Casiño said in a statement.

The Bayan Muna solon also castigated the government’s refusal to reorient the remaining section of its programmed payments for financial obligations for the rest of the year. For 2009, government aimed to allot a total of P698.5 billion for debt payments, 8.7 percent higher than the actual payout of P612.7 billion in 2008.

“It is an endless source of outrage that the Philippine government refuses to drop its debt payments when there are undoubtedly more urgent needs that should be attended to and provided for,” Casiño said.

“A debt moratorium is of utmost importance, as more funds are needed to hasten the rehabilitation are devastated areas and enable victims and survivors to get themselves back on their feet. The billions going to international banks and creditors should be given instead to local service infrastructure repair and creation,” Casiño pointed out.

Based on current data from the Bureau of the Treasury (BTr), the government released P61.277 billion for debt payments in September alone, higher by 1.87 percent from last year’s P60.149 billion allocation.

Interest payments to local lenders and foreign creditors were also exorbitant, with the former receiving P132.635 billion during the nine-month period, and the latter getting P102.648 billion from P93.379 billion paid out in the same period last year, an increase of 9.9 percent.

Principal payments amounted to P313.733 billion, or 3.66 percent higher than the P302.646 billion disbursed in 2008 during the same period. #

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Filed under debt, neoliberalization, politics

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