PHL, China to resume talks on loan framework

The government plans to resume talks with the People’s Republic of China to revive their stalled five-year framework on tied loans, a Trade official said Thursday. Speaking at the Communication and News Exchange Forum, Trade Undersecretary Adrian Cristobal Jr. noted this in the context of his recent visit to Shanghai for the bilateral meeting on the joint commission on economic and trade relations. “We’ve agreed that the expansion of trade and economic relations is on top of the priorities of both countries," Cristobal said. In 2007, the National Economic Development Authority said the Philippines was drafting a five-year framework to guarantee that the Philippine government can secure from Beijing some $2 billion in tied loans. The framework, however, was stalled after the National Broadband Network-ZTE controversy erupted. Cristobal explained that the framework will serve to guide both governments in creating and implementing projects in agri-business, mining, and infrastructure. To finance infrastructure projects, China will extend to the Philippines a $1.4-billion credit facility as part of the framework. “China has reaffirmed its support to the Philippines and has also committed the continuity of its official development assistance. We are looking at a credit facility for important infrastructure projects," Cristobal said. The Trade official added that the framework also seeks to create a China desk at the Board of Investments to help Chinese investors identify their preferred areas of investments. “Both sides are optimistic [and] confident that we can and we should expand trade and economic relations. We have to also build up confidence and really get to work on this bilateral relation," Cristobal said. — PE/VS, GMA News