Philippines urged to examine 'fine print' of loans with China


Posted at Mar 08 2019 02:48 PM

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MANILA - The Philippines should read the "fine print" of its loan deals with China and other foreign governments to avoid falling into a debt trap, an analyst said Friday.

"The challenge now for the Philippines and Malaysia: read the fine print on these contracts. It's time to take a new look at the loans, the commitments of a foreign government that doesn't make sense," Milken Institute Asia Fellow Curtis Chin told ANC's Early Edition.

"Prime Minister Mahatir has raised a couple of questions which the Philippines should also ask itself. Those questions were: Do we need this project? Can we afford this project? Can we pay it back?" he said.

The Philippines should also seek help from the World Bank, the International Monetary Fund and other multilateral lenders to help assess if the loan agreements are fair, he said.