Rosabel Guerrero, BSP bank officer VI, said the improvement of the country's fiscal position could be attributed to an aggressive tax collection system, the Reformed Value Added Tax (RVAT), and the rationalization of government offices.
Guerrero said improvement of the country's financial position resulted to a reduction in the country's foreign debts apart from the fact that the country's projected P21 billion international gross reserves had been attained.
Some of the foreign debts were also terminated following the maturity of the Philippine-owned bonds issued in the early 1990s. Guerrero said the government pre-paid some US$411-million in foreign loan.
"We are talking of big savings in terms of interest payment," said Guerrero, adding this trend leads to a reduction on foreign borrowings to finance government projects.
The country's status in the international finance community also remains in good standing as a result of regular payment of loans, she said.
But as the financial standing of the country is gaining ground, Guerrero stressed the export system still has to be improved.
In the textiles industry, the country slowly lagged behind in the international market, as China reportedly employed an aggressive stance in its exports system.
She stressed a steady financial standing could contribute to stability in the prices of goods, which has been felt at present following the improved standing of the peso versus the dollar. (RO)
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