Solon asks Aquino to seek debt relief during US trip

A member of the Lower House, representing one of the country’s poorest provinces, on Wednesday asked President Benigno Aquino III to use his US trip to seek reprieve from the country's creditors. Eastern Samar Rep. Ben Evardone said the money intended for the debt servicing for 2011 should instead be used for fresh spending on sectors such as health, the judiciary and agriculture. Evardone, who is also former governor of the province, expressed confidence that Aquino has enough moral capital and goodwill to appeal for concessionary repayment terms from foreign creditors, especially on outstanding loans that had not really benefited the country, loans acquired for non-priority projects, and loans acquired to favor cronies of past governments. “In some cases, foreign creditors even agree to condone the debt of emerging economies," said Evardone. He added that Foreign Secretary Alberto Romulo, who is with Aquino in the US trip, can be tapped to work on the specific area of getting more concessionary payment terms from foreign creditors. He said Romulo is an authority on foreign debt issues and who crafted bills on debt relief during his stint in the Senate. "The timing is right and North America is the headquarters of the major creditors of the Philippine government," said Evardone . He said if the country gets a relief from foreign creditors, "we can move money from the debt service funds into money for the vital sectors." "The across-the-board cuts in the 2011 National Expenditure Program have generated a lot of negative reaction from judges, farmers, public hospital administrators and the like. Indeed, you can't cut budgets of public hospitals in the time of dengue and you can't cut the budget of the judiciary with the leaking roofs of judicial courts," said Evardone. The legislator does not agree with the austerity agenda of Aquino’s economic managers, saying that budget deficits are not “sacrosanct" and budget allocations for debt service are also “not carved in stone." “A regime of mindless austerity is just as worse as a regime of reckless spending," he said. Evardone said that strategic spending would generate jobs, open up economic opportunities, spur innovation and create the environment ideal for expanding the revenue base. "Expanding the revenue base has to be done in a robust economy. If we scrimp on public spending, if we engage in mindless belt-tightening, the negative, anti-growth results are predictable enough," he added.—Amita O. Legaspi/JV, GMANews.TV