The country’s economic managers led by Finance Secretary Jose Isidro Camacho and Bangko Sentral ng Pilipinas (BSP) Governor Rafael Buenaventura will travel separately to Washington/New York and Hong Kong/Japan, respectively, to assure these groups
the Philippine economy is still on track with its projections despite the recent terrorist attacks on the US.
At the same time, the trips will enable the government officials to gain a better grasp of the possibility and extent of the anticipated economic fallout resulting from the attacks.
"We want to know the US economy will move or turn out or get a better feel of how the US economy. Basically, we’re doing a validation of how the attacks will affect our economy," Camacho said.
Camacho said he has asked investment banks JP Morgan and Morgan Stanley to arrange for the meeting with the IMF, WB, US Treasury and credit rating agencies such as Moody’s Investor Service, and Standard & Poor’s.
"While we have already done a series of teleconferences, it’s different it we meet them face-to-face and again explain to them the country’s policy issues and our progress on anti-money laundering."
However, Camacho said he will also take the opportunity to pursue government’s request for credit enhancements such as loan guarantees that will enable government to complete its financing requirements while minimizing interests costs.
"Since I will be talking to the IMF and World Bank, I might as well bring up the topic," Camacho said.
The guarantee component by multilateral creditors such as the IMF, WB, Japan Bank for International Cooperation and Nippon Export and Investment Insurance makes it attractive for lenders to extend loans to the Philippines cheaper.
For instance, NEXI guarantees 90 percent of loans while JBIC can guarantee up to 95 percent.
For his part, Buenaventura will be travelling to key Asian economic centers like Hong Kong and Japan.
He will update the Financial Action Task Force representatives in Japan on the newly-enacted anti-money laundering law.
The road trip to the US and Japan is a follow up of the recent teleconferences Camacho and Buenaventura had with several international credit rating agencies to avert a possible credit downgrade following the recent terrorist attacks on the US.
The country’s economic team last week held a series of teleconferences with credit rating agencies such as Standard Poor’s (S&P), Moody’s Investor Service, Fitch IBCA and Japanese Research and Investment Agency.
The government is trying to stave off a further credit ratings downgrade.