FINANCE Secretary Carlos Dominguez III said the loans granted by China to the Philippines do not involve any collateral, like territories and natural resources, as what some quarters claim.
“There’s no collateral here... it’s a sovereign debt... I don’t know what the other countries are doing, but here they are not asking us collateral,” Dominguez told reporters in a briefing over the weekend.
“Look, we borrowed $200 million, and there was no collateral for that. I don’t know what the other countries are doing,” Dominguez said, referring to the issuance of $200 million worth of Panda bonds in the onshore market of China latter part of March 2018.
Dominguez said the government was upholding Philippine rights and that the country had a good credit standing. He cited the investment grade ratings previously given to the Philippines by global credit rating agencies Moody’s Investor Service, S&P Global Ratings and Fitch Ratings.