According to the Associate Justice Antonio Carpio, the country may lose one of the country’s patrimonial asset (Reed Bank) in the event the country defaulted its Chinese loan.
Carpio was referring to the Chico River Irrigation Loan agreement entered by the Philippines with China.
However, a Singapore-based Prof. Eduardo Araral countered, via a message to Sass Rogando Sasot, that Carpio’s concern is baseless.
To prove his point, the professor did some math calisthenics and came up with the magic figure (143M pesos p.a.).
Unless an unforeseen event beyond our control may happen in the future that puts our ability to pay in jeopardy, this figure in relation to our current national budget is too small to prevent us from not paying our loan obligation.
Check out the short explanation of Prof. Araral below.
ANNUAL LOAN REPAYMENT OF CHICO DAM IS EQUIVALENT = 0.00038% OF OUR CURRENT NATIONAL BUDGET. GIVEN THAT, WHAT’S THE PROBABILITY THAT WE WILL NOT BE ABLE TO PAY OUR LOAN?
According to Prof. Eduardo Araral, a Filipino professor teaching at the Lee Kuan Yew School of Public Policy, National University of Singapore, ito ang amortization ng utang para sa Chico DamaUSD62M for 30 years at 2%pa = 143M pesos p.a. = .00038 % of current national budget.
P.S. Prof. Araral sent this computation to me via FB messenger. He gave explicit permission to post this computation and quote him.
Netizen Gloria Cendaña Patoc have nothing but praises for Professor Araral going out of his way to explain complex issues like this to ordinary folks.
We are lucky to have these kind of people to explain in simple term things that ordinary people dont understand . Mabuhay kayo Prof .Aralar ..and Salamat .
Meanwhile, many commenters said they are eagerly waiting for Robredo’s rebuttal to Araral’s computation.
Stanley Yu Hintayin nyo calculation ni Leni. 😤
Arlene Nicole Still waiting for Leni Robredo’s computation.
دشه ثفشؤنشد شرخ طحس Wait natin calculation ni Aleng Lenie malamang tubong lugaw na naman yon.😂