High growth pattern to continue despite scandals, says GMA ally

MANILA, Philippines - The economy will continue to grow at a fast rate despite the scandals and controversies hounding the less than two-month-old Aquino administration, a congressman-ally of former president Gloria Arroyo said yesterday.

Rep. Teodorico Haresco of the party-list group Ang Kasangga said the “astonishing” success of the first international offering of peso-denominated bonds and the record expansion of the stock market “are a solid indication of increased optimism that the new administration will be able to provide a stable investment climate in the country.”

“I am glad that the Philippines has been unaffected so far by these latest developments in the political arena, including allegations of jueteng payola involving some of his men. And despite the projected huge budget deficit this year, investor confidence is still growing due to the policy management of President Aquino,” he said.

“With foreign reserves reaching a historic high of $49.6 billion, exports soaring at 35.9 percent and the continuous surge of the market, foreign investors are obviously confident and optimistic on the country’s investment climate,” he said.

Haresco used to control billions in public funds as head of the rural bridges program of then president and now Pampanga Rep. Gloria Macapagal Arroyo.

He replaced Mrs. Arroyo’s sister-in-law Ma. Lourdes Tuason Arroyo as Ang Kasangga representative. He once headed the congressional planning and budget office, the economic research arm of the House of Representatives.

He said the country achieved a “new economic milestone” after the success of its first-ever sale of peso-denominated bonds, which raised $1 billion globally.

“The offering was so successful that it was oversubscribed by 13 times,” he said.

The success of the bond sale mirrors investor confidence not only in President Aquino but in his economic managers as well, including Finance Secretary Cesar Purisima and Budget Secretary Florencio Abad, he said.

“This is very interesting because while the country has been the subject of jokes around the world because of the Manila hostage crisis followed by the jueteng scandal, the world’s key players in the financial market are still very confident on the Philippine economy,” he stressed.

“This only tells us that foreign investors are not fazed by these controversies. The hostage incident will not have a long-term effect and investors are seeking a bright economic future for our country,” he added.