The cost of ‘friendship:’ PH to avail of China loans despite Japan’s below -1% offer
This is the price we have to pay to get cozy with China.
National Economic and Development Authority (NEDA) Secretary Ernesto Pernia said the government will pursue loans from China despite its price tag of 2-3 percent per annum, even if Japan can offer funding at interest rates between 0.25-0.75 percent.
“The thing about Japanese loans is that the partnership with Japan is a long-standing partnership, and we have had good relations with Japan,” Pernia said when asked about financing agreements.
“I guess vis-a-vis japan it’s clearly a disadvantage (to borrow from China compared to Japan, but then Japan can only afford so much pressure on their ODA,” Pernia added.
The Cabinet Secretary also said borrowing from China makes sure that they are keeping economic ties intact, as friendlier relations prosper between the two nations.