PH economic team goes on road show in US to assure investors of reforms

High-ranking officials of the government’s economic team visited three cities in the United States during the past two weeks to assure American portfolio investors that the impending change in administration will not take away reforms conductive to investments here.

In a statement Wednesday, the Investor Relations Office (IRO) said the non-deal road show held in Boston, Los Angeles and New York last March 4-9 facilitated meetings with top executives of 18 US-based asset management firms, aimed at sending out the message that the economic gains being enjoyed by the Philippines were sustainable for long term.

Finance Secretary Cesar V. Purisima headed the road show in New York, while Treasurer Roberto B. Tan led those in Boston and Los Angeles.

Bangko Sentral ng Pilipinas Deputy Governor Nestor A. Espenilla Jr. participated at the road shows in Boston and New York.

The IRO said the coming national elections “may have raised questions on sustainability of the country’s economic achievements,” as President Aquino will turn over the government’s top post to a new President in June.

But Purisima was quoted by the IRO as pointing out that “with 24 positive credit rating actions behind us—the most among any sovereign in the past five years, we’re all hands on deck in strengthening confidence in our country.”

The IRO added that since 2013, the country has been securing one investment grade sovereign credit rating after another as well as upgrades, especially from the top three global credit rating agencies (Fitch, Moody’s and Standard & Poor’s), which reflected “significant improvement in macroeconomic fundamentals and governance standards.”

“The turnaround in the Philippines’ credit story has led to lower interest rates on debt paper of the Philippine government, thereby reducing its borrowing cost. The investment grade ratings also have influenced a decline in commercial lending rates, allowing businesses and consumers in the country to more easily access financing,” the IRO said.

According to Purisima, “restoring confidence in the Philippines is a large part of why we are riding this virtuous cycle today.”

For his part, Tan said that as far as liability management was concerned, “both legislative and administrative reforms instituted over the years will help see to it that the Philippines stays on the path of a declining debt burden.”

“In turn, the continually widening fiscal space will allow the government to invest even more in infrastructure and social services for a sustainable and inclusive growth,” Tan said.

Espenilla, meanwhile, noted that “the BSP, which enjoys policy independence and fiscal autonomy under the law to pursue its mandates, is one source of policy continuity that bridges transition in political leadership.”

“Key structural reforms implemented in the areas of monetary policy and bank regulation will help the economy continue to enjoy price and financial-system stability, which are both crucial in helping maintain a robust and stable economic growth for the long term,” Espenilla said. Ben O. de Vera