Why does the Philippines need billions in foreign loans?

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The Philippines' foreign debt has ran up to $18.4 billion, as it struggles to contain the spread of the COVID-19 pandemic, the Department of Finance said on Friday.

The government takes loans yearly because it "forms part of efficient governance," said Finance Secretary Mark Dennis Joven.

"Kung nakautang po tayo ng pera, tapos nagbabayad po tayo ng interest at say kunwari .01 percent per annum, pero iyong growth na nadi-derive natin from this pera na ginamit natin, we can generate, say kunwari 5 to 6 percent per annum, then it’s more efficient," Joven said.

 

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