Pre-payment of foreign loans urged-A A +A
Sunday, December 19, 2010
MANILA -- Two lawmakers from Mindanao called on the Aquino administration to reduce the country’s foreign obligations by taking advantage of a strong peso.
This came after the Bangko Sentral ng Pilipinas (BSP) suggested last month that the government should leverage from the continued appreciation of the peso to meet its dollar-denominated loans.
Under House Resolution No. 586, Cagayan de Oro Representative Rufus Rodriguez and his brother Abante Mindanao Representative Maximo Rodriguez Jr. said a robust inflow of foreign capital into emerging markets like the Philippines has propelled the steady rise of peso.
“The Philippine peso has been appreciating in recent months versus US dollar because of, among others, a hefty inflow of foreign capital into emerging economies like the Philippines,” the resolution read, adding that the Hong Kong Shanghai Bank is projecting an exchange rate of P41 to a dollar at the end of 2010. (Virgil Lopez/Sunnex)