After the political noise and security concerns of the past two weeks and the consequent lifting of the national state of emergency, President Arroyo’s economic team is back to promoting the country’s fundamentals and are now preparing its next international roadshow this month or April.
"Right now we’re fortunate that we’re perceived to be attractive (by the markets)," Finance Secretary Margarito B. Teves said. "I guess the way to go about it is to continue to be that way and improve fiscal operations and our macro-economic fundamentals."
About this planned roadshow, Teves said the DoF is in talks with the Bangko Sentral ng Pilipinas and the Bureau of Treasury when the trip will be conducted, which will be in Singapore and Hong Kong.
"We’ll have to confer with Omar (Cruz, BTr chief), Didith (Tan, DoF international financing sector) and Say (BSP Governor Amando M. Tetangco Jr.)… I’m inviting Omar to join us in Singapore and possibly Hong Kong," said Teves.
He added, "Singapore and Hong Kong are the places where there is interest on our bonds … We’ll have sessions before we leave."
Last month Moody’s released its latest assessment on RP sovereigns, which is still a "negative" rating. However hours later Stand & Poor’s came out with its own release, raising its ratings outlook to "stable." Fitch followed next, also adjusting its previous negative rating to stable in outlook recognizes and is consistent with how the market has been valuing our fiscal position."
The better ratings outlook from Fitch and S&P followed the government’s better-than-expected budget deficit in 2005 of P145 billion against program of P180 billion and the increase in the value-added tax rate to 12 percent, which would expand revenues for the year by P74 billion.
National Treasurer Cruz said Moody’s negative "B1" rating on Philippine debt papers has not affected its last investorbriefing trip, which was in Japan last February. "It does not affect anything it is business as usual," said Cruz.
Cruz said the planning for the no-deal roadshow would not be influenced credit ratings reports. "We’re looking at the timing and a bond issuance will be driven by market forces and by our borrowing program and strategy." In January the National Government went back to the foreign debts market and came away with .1 billion in new funds. The next borrowing will possibly involve 0 million to billion ROPs.
He added, "the underlying market conditions are the same. Sentiments may change but the fundamentals has certainly not changed." (LCC)
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