Some legislators have expressed their disapproval of the reported move by the Aquino government to contribute $1-billion loan to the International Monetary Fund (IMF) to assist euro zone countries stuck in financial crisis.
“Charity must begin at home. The government should prioritize the needs of the country rather than infuse funds to those struggling economically. We have more than enough problems needing those funds,” Senate President Pro Tempore Jinggoy Estrada yesterday said.
The funds provided by the Bangko Sentral ng Pilipinas (BSP) were reportedly
sourced from the dollar reserves that increased due to high remittance from overseas Filipino workers (OFWs).
Estrada noted that there remain some perennial problems such as lack of schools, infrastructure, not to mention the continuing poverty issue in the country today.
While it’s laudable for the government to extend assistance to ailing nations, the upper chamber leader said “it would have been more acceptable if the government has already been able to provide for the basic needs of the people and can finance all infrastructure projects and other programs needing immediate implementation.”
Majority Leader Vicente Sotto III said the Philippines is being made to appear as financially stable when in fact it is not.
“We’re a poor country, let’s not pretend that we are rich,” he was quoted as saying in Filipino.
Sotto expressed his strong objection to the move, saying there are a number of people living below the poverty line who need not only the attention of the government but also financial assistance.
“They should be the ones being addressed by the government, not the other countries,” he stressed.
Sen. Aquilino Pimentel III said the funds should have instead been appropriated for debt servicing, considering that the government continues to be saddled with large national debt.
Recent reports showed that the total outstanding national debt has already reached P4.5 trillion as of end of 2011 and that the government has borrowed more from domestic and foreign sources.
Rather than contributing to IMF funds, Pimentel said the government could have used these funds to settle the principal of some of the foreign-funded loans it has incurred in the past.
Pimentel also sees nothing wrong in questioning the move given the situations he has cited.
Sen. Gregorio Honasan said the move could have been but part of an international commitment of the government to the IMF as the country has been a recipient of its loans for over four decades now.
What is important is to ensure transparency on the conditions made by the government in contributing funds to the IMF, he said.
Anakpawis Rep. Rafael Mariano also criticized the Aquino government’s action.
“The Philippines’ $1-billion pledge to IMF will only give more bragging rights for Aquino,” he noted.
The multibillion dollar crisis fund, also known as the “firewall fund,” is aimed at helping the financial agency respond to the euro zone debt crisis.
Portugal, Ireland, Greece and Spain have asked the IMF for assistance after being locked out of debt markets.
The total pledges announced at the G20 Summit in Los Cabos, Mexico, amounted to $456 billion.
“It is at the height of hypocrisy and insensitivity that the Aquino government would commit a staggering $1-billion to the IMF when Filipinos are in dire need of additional budget for basic social services like health, housing and education,” Mariano noted.
He said the Executive department must pull out the donation.
“Contributing to IMF’s ‘crisis fund’ when our country is in a chronic economic crisis is highly illogical and unacceptable. The Philippines is not even a member-country of the IMF. Aquino’s commitment is of his own volition.”
“The actions of President Aquino favoring foreign interests have further disadvantaged Filipinos,” Mariano said.
The Anakpawis lawmaker said the $1-billion fund would be more beneficial if used to fund the shortage of education materials and equipment for public schools.
Mariano’s party-lst group also joined forces with militant fisherfolk group, the Pambansang Lakas ng Kilusang Mamamalakaya ng Pilipinas (Pamalakaya) as they asked members of the Senate and the House of Representatives to stop Aquino from lending $1billion to the global crisis fund of the IMF.
In a joint a press statement, Anakpawis vice chairman Fernando Hicap and Pamalakaya vice-chairman Salvador France accused the President of offering the people’s hard-earned taxpayers’ money to the $456-billion global bailout fund raising campaign organized by IMF.
“The fund generation campaign of IMF is meant for bailouts of transnational and multinational banks and institutions affected by the current economic depression hurting the economies of US, the European Union and other members of the G8 bloc. And the Philippine government is being compelled to give up one billion dollars of its public funds to finance this greatest transnational robbery of the new millennium,” both leaders said in their joint statement.
But Bangko Sentral ng Pilipinas Governor Amando Tetangco Jr. said the Philippines is supporting the global efforts to stabilize the world economy and maintain it on a growth path.
He added it is the reason the Philippines is extending a $1-billion loan to the IMF. “We are a member of the global community of nations and it is also in our interest to ensure economic and financial stability across the globe.”
Tetangco maintained the loan to the IMF is the Philippines’ way of giving back to the world’s so-called lender of last resort after it helped the country address its financial difficulties in the past.
He added Philippines has been a net borrower from the IMF for almost 40 years until the country finally settled its loans in 2006.
“We appeal to our lawmakers to cross party lines and frustrate this act of modern-day puppetry being carried out by the Aquino administration. We have a lot of problems here pertaining to hunger, poverty and injustice which this administration should effectively address and resolved,” Hicap and France added.
A lawmaker from Eastern Samar, however, lauded the government’s pledge.
Rep. Ben Evardone, said the move would show that the Philippine economy is healthy.
“The decision of the BSP to lend IMF $1 billion is an indication of a healthy economy,” he added.
“That will send a positive signal to international investors that Philippine economy is stable. The mere fact that we have graduated from a debtor to a creditor nation is already a milestone,” the lawmaker said.
Evardone maintained that with a healthy economy, the government can focus in allocating more resources for infrastructure and social services. Angie M. Rosales, Charlie V. Manalo, Gerry Baldo and Pat C. Santos
Aquino gov’t quizzed on $1-B pledge to IMF
- Written by Angie M. Rosales, Charlie V. Manalo, Gerry Baldo and Pat C. Santos
- Saturday, 23 June 2012 00:00
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- 9 comments
9 comments
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After almost 40 years the Philippines is the net borrower of the IMF until the country finally settled it's loan in 2006, ibig sabihin nagawa ito during GMA administration. Mr. President simpleng problem sa traffic nalang po ang hihilingin namin, huwag na po yung pinakamahirap na problem ng bansa, dahil alam naman namin ang capabilities nyo po. Yun nalang sulosyon sa traffic. Legacy of your administration. Maiintindihan na po namin kayo at maaalala.
Amor dela Torre Sunday, 24 June 2012 07:07 Comment Link -
What? Will we lie to them investors and show to them a false impression? I think we better not.
Francis Raymund Saturday, 23 June 2012 23:16 Comment Link -
The fund is the FRUITION of Noynoy's hardwork...that's why he has no qualms and all the leeway to lend it to others...
JOSE RIZAL Saturday, 23 June 2012 20:24 Comment Link
Hahahaha! -
Sa akin po... isang karangalan parin na malaman na matatag ang ating ekonomiya, tama ang mga sinasabi ng ilan nating mga kababayan na maraming kakulangan sa ating bansa pero hindi naman po ito ang hadlang. Kahit saang bansa naman po ay may mahihirap din.
Ang Manlalakbay Saturday, 23 June 2012 17:50 Comment Link
Karangalan po sa akin na malaman ng buong mundo na may kakayahan din ang bansang PILIPINAS na tumulong sa ibang nangangailangan... hindi yung lagi na lang tayo ang tinutulungan.. hindi bat malanking sampal sa mukha nila lalo na't 3rd world country ang nag-bigay ng pera!
Walang perpektong gobyerno. pero sa akin po isang malinaw na indekasyon na muling pag-unlad ng PILIPINAS... mabuhay tayong mga FILIPINO... -
pasikat talaga gobyerno ng Pinas, nag hihirap na nga mga mamamayanan,ibang klaseng pamamahala talaga, makapagyabang lang di alintana ang sariling bakuran, mga kagalanggalang na na public servant hoy gising!!!!!!!!!!!!!!!!!!
Arlando Saturday, 23 June 2012 15:20 Comment Link -
pasikat talaga gobyerno ng Pinas, nag hihirap na nga mga mamamayanan,ibang klaseng pamamahala talaga, makapagyabang lang di alintana ang sariling bakuran, mga kagalanggalang na na public servant hoy gising!!!!!!!!!!!!!!!!!!
Arlando Saturday, 23 June 2012 15:19 Comment Link -
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Bakit di mo muna tulungan ang sarili mong bansa, idilat mo ang iyong mata.. Lumakad ka sa mga squatters area. Ikutin mo ang tondo at lahatin mo na. Para makita mo na mas nangangailangan kaami kesa sa kanila.
Lorna Saturday, 23 June 2012 10:27 Comment Link -
Palibhasa hindi pera ni BS Aquino yung pera kaya't ganun na lang kung magbitaw ng pera.
asmir Saturday, 23 June 2012 01:00 Comment Link
Hoy Mr. Noynoying at Mr. Sipsip Evardone hindi ang gobyerno o magandang ekonomiya ang dahilan kaya maraming dollar reserve ang Pinas kundi galing yan sa dugo't pawis ng mga OFW's!!! Kayong mga trapo at mga dilaw sa gobyerno, kayo ang tunay na perwisyo ng bayan = mga BALIW AT HANGALl !!!! Mga demonyo!!!!
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