With Philippines' P11.7 trillion in loans, candidates clash on good vs. bad debt

The country's P11.7-trillion debt had presidential candidates crossing swords on the wisdom of borrowing money and where to spend it.

In a debate put together by CNN Philippines, Vice President Leni Robredo said foreign debt was not necessarily bad.

"Foreign debt is not bad per se, kung ang inutang natin ay mapupunta sa mga bagay na kailangan natin," Robredo said.

"Dapat iyong returns, mas marami kaysa sa intuang natin. During the pandemic, malaki ang kinailangan nating pera pero hindi puedeng iyong inutang ay napunta lang sa korapsyon," she added.

"'Pag tayo nangutang, bilang pangulo, sisiguraduhin ko na dapat mapunta sa dapat mapuntahan kasi lugi ang taumbayan na nagbabayad siya ng utang na di naman siya nakinabang," Robredo said.

Dr. Jose Montemayor said there was nothing good about the country borrowing money. 

"Masama 'yan. You are mortgaging the future ng ating mga anak at apo
We will create a safety net para hindi mapunta iyong inutang para lang sa government officials. We will clog all loopholes of corruption," Montemayor said.

"Walang mabuting utang, lahat masama," he added.

For Senator Manny Pacquiao, debt involved borrowing money for investment that produces income, and borrowing money to pay for expenses.

Pacquiao said the latter is bad debt.

"For example, shortage sa power dito. Mangutang tayo dahil maglalagay tayo ng power generator para madagdagan 'yung power natin. Hindi masama 'yun kasi may income return," Pacquiao said.

"Pero kung mangungutang tayo dahil sa expenses natin taon-taon, 'yun ay talagang masasabi kong mismanaged ang bansa natin," he added.

Abella, who is also a former presidential spokesperson of the Duterte administration, said it was important to create an agricultural ecosystem to provide the needs of the vulnerable communities.

“Tama yon hindi tayo dapat matakot sa utang, depende rin kung saan natin ilalagay kung aantabayan natin yan then we can actually supervise it and make it grow," Abella said.

"Ang tinitignan po talaga natin what we are planning to do is to develop agriculture and to becoming a mega industry. Mega-industry in which dapat nakadikit doon for example, universities, research and development, manufacturing, all the way to marketing, all the way to post-harvest facilities, and construction,” he added.

Manila Mayor Francisco "Isko" Moreno said he would address the country's "challenging" debt by disposing of non-performing and underperforming assets.

"I will dispose non-performing, underperforming asset to the state to accept to our debt servicing so that, mga kababayan wag naman sa inyo ng sa inyo yung pasa ng utang," Moreno said.

"Kumbaga ang gobyerno, sometimes you have to let go of these liabilities of the state to address a particular problem. and this will be the next challenging task of the next president," he added.

Labor leader Leody De Guzman said debts should be audited and those who "stole" this borrowed money should be held accountable for their actions.

At the CNN Presidential Debate on Sunday, De Guzman claimed that the country's huge debts were allegedly stolen by those in power. 

"Masama ang utang kasi itong inutang mula kay Marcos, noong mga nagdaang administrasyon, inutang ito ng mga trapo, ng mga dinastiya nakaupo sa gobyerno... kaya karamihan ng mga inutang na ito ay ninakaw," De Guzman said.

"Ang dapat gawin natin ay i-audit natin ito at pagbayaran natin kung sino ang mga nagnakaw dito at klaro naman ito na susubaybayan itong ganitong klase ng mga utang at nasa record 'yan ng Freedom of Debt Coalition na kasamahan natin," he added. —NB, GMA News