RP finance, BSP execs in US to borrow money Written by Ed Velasco Friday, 24 October 2014 00:00 font size decrease font size increase font size Email Be the first to comment! Finance and central bank officials have started yesterday a non-deal roadshow in the United States to update existing and potential government-securities investors there of the bright economic prospects for the Philippines. According to an e-mail message from the BSP’s Investor Relations Office, the Philippine delegation is led by Finance Secretary Cesar Purisima, World Bank-bound National Treasurer Rosalia de Leon and Assistant Gov. Ma. Cyd Tuaño-Amador of the Bangko Sentral ng Pilipinas (BSP). The roadshow will run until Oct. 28 and will cover Los Angeles, Boston, New York and Philadelphia. “The Philippines is poised to remain a bright spot. Updating investors offshore on the country’s economic outlook is a prudent exercise as it helps keep appetite for our government securities,” Purisima said. In the roadshow, the officials are expected to provide the foreign audience updates on the country’s economic-growth prospects, inflation outlook, fiscal situation and projections on monetary and financial-sector stability, among other factors substantiating the country’s creditworthiness. Over the past four years, the Philippines has become a rare bright spot, having improved its competitiveness and credit image despite challenges confronting the global economy. Its ranking in the World Economic Forum’s Global Competitiveness Report jumped by 33 notches from 85th in the 2010-2011 survey to 52nd in the 2013-2014 survey. It has also secured investment grade sovereign credit ratings from all three major international credit rating agencies — Fitch Ratings, Moody’s Investors Service and Standard & Poor’s — for the first time in its credit history. All three credit watchdogs gave the Philippines the minimum investment grade in 2013, while S&P followed the move with another notch of upgrade earlier this year to “BBB.” The Philippine government expects the country’s gross domestic product (GDP) to hit the official growth targets — set at a range of 6.5 to 7.5 percent for this year, seven to eight percent for next year, and 7.5 to 8.5 percent for 2016. The BSP projects inflation to settle within the modest bands of three percent to five percent this year, and two to four percent next year and in 2016. Similarly, the government’s budget deficit is expected to stay manageable, or no more than two percent of GDP up to 2016. For 2015, the government has set its gross financing requirement at P700.8 billion. Of this amount, 14 percent is intended to be raised through foreign borrowing, while the bigger share of 86 percent is targeted to be raised through domestic borrowing. With the BSP’s prudent regulatory standards, the country’s financial system is likewise expected to remain stable and able to support the funding requirements of the growing economy. Published in Business
Posted on: Sat, 25 Oct 2014 14:14:33 +0000
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