Casiño files resolution to probe Phl $1 billion IMF loan

A progressive solon called on the House Committee on Banks and Financial Intermediaries to conduct an inquiry on the Philippine government’s $1 billion loan to the International Monetary Fund.

Partylist Rep. Teddy Casiño, filed House Resolution 2525, directing the Committee  to probe in aid of legislation on the Philippine government’s $1 billion loan to the International Monetary Fund through the Bangko Sentral ng Pilipinas.

Casino said the administration is misleading the public into thinking that the economy is well and improving, Casiño said the Aquino administration’s announcement that we are now a creditor country is ridiculous and misleading. The fact is, we are still a net debtor country, with total debt and national government debt at an all-time high of $62.9 billion and P5.1 trillion, respectively,”

The lawmaker said that the congressional inquiry should get to the bottom of the BSP’s confusing statements. “We want to know the wisdom behind this pledge and the terms of these transactions. Is this a prudent investment?  We’re not really even helping the people of crisis-stricken countries, only offering to bailout banks, a move (or supposed last-minute solution) which is still being debated upon by both experts and the public. Was this political posturing on the part of the BSP rather than a sound economic decision? Should the BSP bconcern itself with the Executive’s flights of fancy?”

Casino pointed out that not only is the pledge possibly risky, given the global situation and the country’s own debt and budget problems, but the $1 billion could probably earn more if invested in other financial institutions. He suggested that the administration focus its eyes on the economic woes of the people instead of spreading useless and misleading statements.

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