RP economic team to conduct no-deal roadshow in US, Europe

The government will conduct a no-deal roadshow next month to apprise investors in Europe and the US of the real conditions in the Philippines amid rising concerns over the political situation.

The economic team, led by Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco, Finance Secretary Margarito Teves and Trade Secretary Peter Favila, is scheduled to meet with European and US investors in separate briefing conferences in London and New York.

According to the BSP’s Investor Relations Office (IRO), the economic team will be meeting with investors for the first time this year after conducting similar briefings in Tokyo and Singapore earlier.

The Arroyo administration is drumming up interest for the remainder of its programmed foreign borrowing this year after successfully completing a $2.1-billion bond float in January.

IRO executive director Rene Pizarro admitted that the economic team could face questions spurred by lingering concerns over potential political unrest that could create uncertainty.

However, Pizarro expressed confidence that the economic team would be reporting on positive macroeconomic numbers that could allay fears of political instability, especially since the value-added tax (VAT) rate has been increased.

As a result, the budget deficit was set on a firm downward trajectory even faster than the programmed decline as taxpayers filled in the revenue and spending gap following the VAT increase from 10 percent to 12 percent.

"Last year’s roadshow was harder because at the time, we didn’t have the numbers that we do now, we were on the defensive," Pizarro said. "This time, all numbers are good."

Pizarro said the government is not expecting any deal to come out of the roadshow but has already sought authority from the BSP to start planning for a $100-million foreign borrowing.

He said the economic team is scheduled to meet with European investors in London on April 6-7 while another meeting is scheduled with North American investors in New York on April 10-11.

Pizarro said political concerns might be aired during these meetings but if previous investor briefings are an indication, he said investors and analysts will be concerned with macroeconomic numbers.