BTr to continue with ‘award-winning’ debt tack
The Bureau of the Treasury (BTr) will push through in December with another bond exchange meant to improve the government’s debt profile—one of the reasons that Euromoney named Cesar V. Purisima its Finance Minister of the Year for 2012.
The debt swap, through which the BTr offers to replace outstanding treasury bonds with fresh ones, was moved by a few weeks from November to give investors a respite from the ongoing retail bond float.
Euromoney cited Purisima “for his careful and successful stewardship of the economy in the Philippines.”
Purisima’s leadership and decision-making have been a key factor in a shift in the perception and positive view of the Philippines’ economy, the publication said in a statement explaining its choice for the award.
“Purisima has worked closely with President Benigno Aquino III to champion the idea that ‘good governance is good economics,’” the magazine said. “Purisima has unleashed an unforgiving strategy to combat tax evasion and maximize revenue from corporates without introducing any new taxes or reforms.”
According to Euromoney, Purisima has also taken “gutsy measures” to protect the local economy amid a downturn in developed markets, including bond swaps conducted in July 2011 and December 2010.
Last year, the BTr swapped T-bonds that mature in seven years or less for P67.6 billion worth of 10 years and P255 billion of 20 years.
In 2010, a similar exercise involved P39.5 billion worth of fresh 10-years and P181 billion of 25-years in exchange for outstanding short- to medium-tenor domestic bonds.
Partly through such activities, the Department of Finance has been lengthening the maturities of its outstanding obligations to make payments more manageable.
In a statement, the finance chief said his receiving the award is a testament to how far the Philippine economy has turned around under the leadership of President Aquino.—Ronnel W. Domingo
