PH economy ‘strong’ vs Greek bailout effects—Palace

Following a dominant win of the Greek government’s “no” vote in a referendum on financial bailout reform proposals of its creditors, Malacañang on Monday said the Philippine economy was “strong” and “resilient” enough to deal with possible effects of the plebiscite to the country.

Communications Secretary Herminio Coloma said the strong economic policies of the Aquino administration would allow the government to “deploy ample resources” in dealing with “possible delirious effects” of the referendum.

“The Philippine economy is strong, resilient, and able to deal with possible fallout from the results of the referendum held in Greece yesterday,” Coloma said in a statement.

The Agence France-Presse reported that the euro plummeted 1.6 percent to $1.0963 in the wake of the referendum. French President Francois Hollande and German Chancellor Angela Merkel were set to meet in Paris to discuss the results.

“Investor confidence is at an all-time high and given the wide fiscal space created by high growth rates and sound economic management during the past five years,” Coloma added.

Finance Secretary Cesar Purisima said the Philippines will indeed by affected by the bailout, but noted that the country’s “strong external and fiscal situation” will minimize the effects.

“Everyone will be buffeted by this including the Philippines, but the Philippines is now in a stronger position to deal with this given its strong external and fiscal situation as well as much lower and better liability structure,” Purisima said.

“The Greek ‘No’ vote highlights the structural weakness of a currency union without fiscal and political union and makes for perilous choices for both sides,” Purisima added. “This means heighted market volatility.”

Department of Labor and Employment Secretary Rosalinda Baldoz also assured Filipinos in Greece that the government was not expecting a mass repatriation.

“Most overseas Filipino workers are highly skilled workers and they continue to be in demand. For those affected, they prefer to be trained as caregivers for third country deployment like Canada. Others are married to Greek nationals,” Baldoz said in a statement.

In a previous interview with government radio, deputy presidential spokesperson Abigail Valte said the Philippine Embassay in Athens “is preparing for the worst case scenario if the situation does not improve.” AC