Duterte and his influential friends and business associates could each benefit with hundreds of millions of dollars in finders fees, of 2-7%, for such deals. Duterte reportedly sought to fast track some deals, and has publicly mooted the possibility of declaring martial law for a wide range of issues, including drugs, traffic, and the situation on Mindanao. Debt imposed on the public through corruption, fast-tracking or under martial law should be considered odious debt, and not repayable. The only way to stop such unjust debt is for the terms to be entirely transparent to the Philippine public in advance, for full cost-benefit analyses to be done by an independent authority on each deal, and for the Philippine Congress to vote on whether each deal proceeds. Failing that will lead to virtual Philippine debt bondage to China.
The attached chart shows how $167 billion of new Philippine debt will affect the Philippine economy over a period of 10 years, at different possible interest rates. It assumes monthly compounding of interest and is based on a standard compound interest formula. The effect will be very different depending on the rate of interest — which neither the Duterte Administration nor China has divulged. The Philippine people must demand to know and agree to this interest rate before the deals are signed.