The Freedom from Debt Coalition (FDC) said on Wednesday that instead of relying on new borrowings to finance the relief, rehabilitation efforts and the reconstruction of public structures damaged or destroyed by "Ondoy" and "Pepeng," the government should instead call for a debt moratorium from international financial institutions like the World Bank and Asian Development Bank (ADB).

During the Fernandina News Forum at the Club Filipino in Greenhills, San Juan City, Eman Hizon of FDC explained that instead of incurring fresh loans from rich countries like the United States, Japan and Germany, the government should impose a unilateral debt moratorium.

Hizon said the late former president Ferdinand Marcos did this in the early 80s when he deferred the payment of foreign loans and interest for a year when the country entered into an  economic slump.

"Dapat i-pressure natin ang gobyerno to ask for a debt moratorium. Iwan muna natin dito ang pera for domestic spending. Dito muna paikutin," Hizon said during the news forum.

Lidy Nacpil, FDC vice president, explained that relying again on usual measures such as floating bonds would sink the country deeper into debt and deficit spiral.

"While financing mechanisms should immediately be pursued to provide immediate relief and rehabilitation, it must not be at the expense of bloating the national government debt and our fiscal deficit - all of which shall be borne eventually by the people including the typhoon victims. It would be a case of victimizing already victims," she said.