Groups sneer at WB growth projections for Phl

MANILA, Philippines - Groups led by the Freedom from Debt Coalition (FDC) and Focus on the Global South (FGS) sneered at the glowing projections by the World Bank over the Philippine economy and instead demanded cancellation of the country’s debts.

They denounced the new World Bank loans for recovery efforts in typhoon-devastated areas, and said that the Philippines needs grants, not more debts, to recover from the death and destruction caused by Super Typhoon Yolanda that struck the Visayas last year.

“We are now almost a billion dollars deeper in debt with the World Bank, and another billion with the Asian Development Bank. These so-called development banks have shamelessly lent to a country devastated by the effects of climate change while still hell-bent on collecting interest payments and principal amortization for Philippine debts, including those that did not benefit the people.

These new loans should be revoked,” said FDC secretary-general Sammy Gamboa.

Mary Ann Manahan, FGS program officer, said debt payments have drained the public purse resulting in the privatization, deregulation and liberalization of key industries and service sectors because the government, as dictated by international financial institutions, needed to mobilize private investors.