|
DEPARTMENT
OF FOREIGN AFFAIRS
|
24 April 2007 – Consul
General Cecilia B. Rebong of the Philippine Consulate General in New York,
U.S.A. reported to the Department of Foreign Affairs that the New York leg of
the US-Europe Non-Deal Investor Roadshow on 15-16 April 2007 was successfully
conducted by the Philippines’ Department of Finance (DOF) and the Banko
Sentral ng Pilipinas (BSP) to brief investors and agencies with updates on
the Philippines.
The non-deal roadshow,
conducted by a group of investment banks together with the Investor Relations
Office (IRO) of the BSP in the U.S., Germany and the United Kingdom on 10-20
April 2007, aimed at giving updates to fixed-income, portfolio and direct
investors, and credit rating agencies on the recent economic and political
developments in the country, and the economic reforms undertaken by the
government.
In New York, the Investor
Roadshow delegation led by Finance Secretary Margarito B. Teves conducted
one-on-one meetings with leading financial and investment groups, including
Goldman Sachs Asset Management (GSAM), Oppenheimer & Co. Inc., Moodys, Stone
Harbor Investment Partners LP, Standard and Poor's and Teachers insurance and
Annuity Association.
Members of the delegation were
BSP Managing Director Cyd Tuano-Amador, IRO-BSP Executive Director Renato G.
Pizaro, Ms. Leah de Leon from the Department of Finance, and Ms. Editha Martin
of IRO-BSP.
A
roundtable discussion with members of the foreign press, including journalists
from the Associated Press, Reuters, Risk, Bloomberg Markets and Fortes Magazine,
was held on 16 April 2007 at the
Boardroom of the Philippine Center.
The discussion centered on the strong economic fundamentals
of the country, and the need to improve infrastructure and facilities, provide
fiscal incentives and reduce the barriers to establishing a business in the
Responding to queries on the strength of the Philippine peso
against the US dollar in the exchange market, the BSP clarified that there is no
policy to peg the peso to a specific rate, only a policy to
control volatility, and that presently the peso is fairly valued. Due
to strong inflows in foreign exchange, the government has been able to pre-pay
loans, increase domestic borrowing and raise reserves.
According to the BSP, the E-VAT was credited by the
delegation for bringing about the fiscal turnaround in the country, that, if
kept on-track, the country will be able to achieve fiscal stability and a
balanced budget by 2008. Director
Amador described the E-VAT as a "well-targeted tax," emphasizing that
30% of collections are spent on mitigating the impact on lower income families
in the form of a reduction on the excise lax on oil, franchise tax and increased
social spending.
On
the brain drain resulting from outflow of
professional and laborers, Secretary Teves said, “With the steady
growth of the population, the country struggles to absorb the increase in the
labor force, with job creation as the
primary focus, and overseas work remaining a ‘second-best solution.’” He
added that while the outflow of manpower has socio-economic costs, this may also
be seen in a positive light, as the funds sent back to the country are generally
spent by recipient families on the payment of education, housing and health
care, ultimately strengthening the human resource base of the
About the unrest in the
southern
The
delegation proceeded to
/jay
(Home)