These game-changing reforms will help stimulate the economy, generate more jobs, improve basic services to Filipino consumers and allow for the exchange of skills and technology with the country’s foreign partners. The Duterte administration invested massively in infrastructure under the “Build, Build, Build” program, which I originally called the Golden Age of Infrastructure in the Philippines.
There is no foolproof way to distinguish short-term illiquidity from fundamental insolvency (the quest for a clear-cut answer probably started with Bagehot around 1870). So the ESM (like any other lender of last resort) is exposed to two kinds of risk: bailing out an insolvent borrower and allowing the bankruptcy of an illiquid one.