A MILITANT legislator has virtually accused the government of being heartless for continuing to reject the proposal to declare a moratorium, continuing to service its debt in the face of the massive devastation wreaked by storm Ondoy and typhoon Pepeng recently.

“After the devastation caused by typhoons Ondoy and Pepeng worsened by the lack of government preparedness, it is shocking that the Arroyo administration still refuses to declare a moratorium on debt payments. These so-called financial obligations are nothing compared with government’s obligations to the Filipino people, millions of whom are worse off than they were previously because of the calamities,” said party-list Rep. Teodoro Casiño of Bayan Muna.

He assailed the government’s refusal to reorient the remaining section of its programmed payments for financial obligations for the rest of the year. For 2009, the government aimed to allot a total of P698.5 billion for debt payments, 8.7 percent higher than the actual payout of P612.7 billion in 2008. It already paid out P549 billion for the first nine months.

“It is an endless source of outrage that the Philippine government refuses to drop its debt payments when there are undoubtedly more urgent needs that should be attended to and provided for,” added Casiño.

He believes a debt moratorium is of utmost importance because more funds are needed for rehabilitation and to enable survivors to get back on their feet. “The billions going to international banks and creditors should be given instead to local service infrastructure repair and creation.”

Casiño said data from the Bureau of the Treasury showed the government released P61.277 billion for debt payments in September alone. He indicated that even only half of this amount would have gone a long way in helping typhoon victims recover and continue to contribute to the economy.

Interest payments to local lenders and foreign creditors were also exorbitant, with the former receiving P132.635 billion during the first nine months and the latter P102.648 billion. Principal payments amounted to P313.733 billion.