MANILA, Philippines — Malacañang assured on Monday that the government is “evaluating all kinds of loans” the country is entering into with China after Malaysian Prime Minister Mahathir Mohamad warned the Philippines against falling into the so-called Chinese “debt trap.”“We will take his advice, and the economic managers are evaluating all kinds of loans that we’re having with the Chinese government,” Presidential Spokesperson Salvador Panelo said Monday in a Palace briefing. ADVERTISEMENTDuring his two-day official visit in the country, Mahathir warned its Southeast Asian neighbor, which is relying on funds from China to finance its flagship infrastructure projects. President Duterte has been turning to China to help fund its “Build, Build, Build” program which aims to build new highways, railways, airports, piers, and bridges in the next 10 years. READ: Beware of China debt trap, experts warn PH officialsPanelo claimed that the economic managers have already explained that the Philippines is “not at a disadvantage” in the China-funded irrigation project in the Cordillera. But the terms of the funding deal highly favor China, which is guaranteed payments of high-interest rates and preference for Chinese contractors, Colmenares said.

Source: Philippine Daily Inquirer March 11, 2019 07:07 UTC