MANILA, April 8 (Reuters) - A United Nations human rights expert on Tuesday urged international creditors to cancel the Philippines' debt and give it unconditional grant aid instead of new loans to fund massive post-typhoon reconstruction.
The Southeast Asian country, hit hard five months ago by Typhoon Haiyan -- one of the strongest storms to make landfall anywhere -- estimated the total cost of a four-year reconstruction effort could surpass the current estimate of 361 billion pesos ($8 billion).
The Philippines' outstanding external debt was $58.5 billion at the end of 2013, according to the central bank.
"I welcome the international support provided to the Philippines in the aftermath of the cyclone, but am concerned that more than $22 million leaves the country everyday, paying off overseas debts," Cephas Lumina said.
Lumina is an independent expert charged by the UN Human Rights Council to monitor the effects of foreign debt on the enjoyment of all human rights, particularly economic, social and cultural rights.
Haiyan, which swept ashore in the central Philippines on Nov. 8, displaced around 4 million people from their homes, and destroyed 500,000 houses, the United Nations estimates. Damages to infrastructure, hospitals, schools and public services were estimated at $12 billion.
"While around $3 billion has left the country to serve its debt since the typhoon struck, the country has received so far only $417 million for its strategic response plan by international and private donors, about half of the total relief requested," Lumina said in a statement.
The Philippines, excluded as a lower middle-income country from international debt relief initiatives, is expected to pay $8.8 billion to service debt this year alone, the United Nations said.
"By definition, loans for reconstruction cannot generate returns to enable the debt to be paid," Lumina said. "International lenders should rather consider cancelling debt, to ensure that the country can recover."
About a fifth of the Philippines' external debt as of end-2013 was owed to the World Bank and the Asian Development Bank, according to the United Nations.
The country's top bilateral lenders are Japan, the United States, the United Kingdom, France and Germany, the agency said.
There was no immediate comment from Philippine Finance Secretary Cesar Purisima on the United Nations statement.
Manila has set aside funding of 54 billion pesos for the rebuilding effort. At least 80 billion pesos more would come from concessional loans offered by the World Bank, the ADB and the Japan International Cooperation Agency.
Once one of the world's most prolific global bond issuers, the Philippines has been relying less on foreign borrowing to plug its budget gap, and has been pursuing more debt buybacks and swaps and innovative deals such as local-denominated global bonds, prompting debt ratings agencies last year to lift the country to investment-grade status.
Lumina, however, said "the disaster should rather serve as an opportunity for lenders to acknowledge that odious debts emanating from the rule under Ferdinand Marcos should be cancelled."
Marcos, the late dictator who ruled the heavily indebted and impoverished Philippines for two decades, was toppled in an army-backed popular uprising in 1986. (Reporting by Erik dela Cruz; Editing by Clarence Fernandez)
Our 2024 Coverage Needs You
It's Another Trump-Biden Showdown — And We Need Your Help
The Future Of Democracy Is At Stake
Our 2024 Coverage Needs You
Your Loyalty Means The World To Us
As Americans head to the polls in 2024, the very future of our country is at stake. At HuffPost, we believe that a free press is critical to creating well-informed voters. That's why our journalism is free for everyone, even though other newsrooms retreat behind expensive paywalls.
Our journalists will continue to cover the twists and turns during this historic presidential election. With your help, we'll bring you hard-hitting investigations, well-researched analysis and timely takes you can't find elsewhere. Reporting in this current political climate is a responsibility we do not take lightly, and we thank you for your support.
Contribute as little as $2 to keep our news free for all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
The 2024 election is heating up, and women's rights, health care, voting rights, and the very future of democracy are all at stake. Donald Trump will face Joe Biden in the most consequential vote of our time. And HuffPost will be there, covering every twist and turn. America's future hangs in the balance. Would you consider contributing to support our journalism and keep it free for all during this critical season?
HuffPost believes news should be accessible to everyone, regardless of their ability to pay for it. We rely on readers like you to help fund our work. Any contribution you can make — even as little as $2 — goes directly toward supporting the impactful journalism that we will continue to produce this year. Thank you for being part of our story.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
It's official: Donald Trump will face Joe Biden this fall in the presidential election. As we face the most consequential presidential election of our time, HuffPost is committed to bringing you up-to-date, accurate news about the 2024 race. While other outlets have retreated behind paywalls, you can trust our news will stay free.
But we can't do it without your help. Reader funding is one of the key ways we support our newsroom. Would you consider making a donation to help fund our news during this critical time? Your contributions are vital to supporting a free press.
Contribute as little as $2 to keep our journalism free and accessible to all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
As Americans head to the polls in 2024, the very future of our country is at stake. At HuffPost, we believe that a free press is critical to creating well-informed voters. That's why our journalism is free for everyone, even though other newsrooms retreat behind expensive paywalls.
Our journalists will continue to cover the twists and turns during this historic presidential election. With your help, we'll bring you hard-hitting investigations, well-researched analysis and timely takes you can't find elsewhere. Reporting in this current political climate is a responsibility we do not take lightly, and we thank you for your support.
Contribute as little as $2 to keep our news free for all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
Dear HuffPost Reader
Thank you for your past contribution to HuffPost. We are sincerely grateful for readers like you who help us ensure that we can keep our journalism free for everyone.
The stakes are high this year, and our 2024 coverage could use continued support. Would you consider becoming a regular HuffPost contributor?
Dear HuffPost Reader
Thank you for your past contribution to HuffPost. We are sincerely grateful for readers like you who help us ensure that we can keep our journalism free for everyone.
The stakes are high this year, and our 2024 coverage could use continued support. If circumstances have changed since you last contributed, we hope you'll consider contributing to HuffPost once more.
Support HuffPostAlready contributed? Log in to hide these messages.