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22:20, 25-Apr-2019
The BRI offers favorable loan terms to the Philippines
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The Belt and Road Initiative (BRI) is a platform on which every country can work together for a win-win outcome. On the sidelines of the second Belt and Road Forum for International Cooperation, Ramon Lopez, Secretary of Trade and Industry of the Philippines, talks about the opportunities the BRI provides in an exclusive interview with CGTN's senior correspondent Tian Wei.
The BRI will have a great impact on Philippine trade when it comes to infrastructure development. For example, the technical capabilities brought in by Chinese construction company partners benefit Philippine companies.
Financing can also be affected by the BRI. So far, the Department of Finance was able to show that the credit and loan terms are actually superior to those provided by other countries, even in the previous transactions of the Philippine government.
Therefore, the BRI is not a debt trap, but an economic system that brings real benefits to all parties.
Contrary to many perceptions being floated in the Philippines, the numbers have shown that loans from China will account for less than five percent, and may grow to just nine percent of the Philippines' total debts, which indicates that there is no debt trap with China.
"Some [experts] probably think that or have a notion that the developing economy might not offer the same loan terms as it should have offered the best terms to them," he added.
When an initiative comes out from a developing and emerging economy, there is so much suspicion, whether geopolitical or financial, but there are plenty of opportunities if developing countries and emerging economies can work together.
"Let the negotiators get to the final terms, one would just have to find a win-win combination in all these transactions," Lopez concluded.
(If you want to contribute and have specific expertise, please contact us at opinions@cgtn.com)