MANILA, Aug 17 (Mabuhay) — The country’s debt problems will not lead to similar problems suffered by Sri Lanka.

This was assured by Finance Secretary Benjamin Diokno when asked by Senator Sonny Angara during the hearing of the Senate ways and means committee regarding the country’s debt.

“Well, I can assure you, your honor, that we won’t go the Sri Lanka way. We are very careful in our borrowings. In fact, as the treasurer said, I think most of our debt is long term,” Diokno said.

Angara, vice chairperson of the committee, posed the question to debunk speculations that the Philippines’ debt situation is comparable with Sri Lanka.

“I think we should be able to service whatever we borrowed down the road. So I can assure you, Mr. Chairman and members of the committee that in fact, that is the purpose of that medium-term fiscal framework to make sure that we don’t go the Sri Lanka way,” said Diokno.

Last week, Bureau of Treasury data showed that as of end-June 2022, the country’s debt-to-GDP ratio stood at 62.1%, lower than the 63.5% debt level as a percentage of GDP in the first quarter of the year.

This is still above the internationally recommended ceiling of 60% of public debt’s share to the economy.

The Marcos administration is targeting to bring down the debt-to-GDP ratio below 60% by 2025.

Diokno earlier said the government will no longer borrow as much as what was done during the Duterte administration.

As of end-June, the last month in office of the Duterte administration, the national government’s debt stock amounted to P12.79 trillion. (MNS)