Press Release
September 30, 2008

ROXAS TO BSP, DOF ON FINANCIAL CRISIS: KEEP PEOPLE IN THE LOOP

Liberal President Senator Mar Roxas today called on the Bangko Sentral ng Pilipinas, the Department of Finance and other government financial institutions to be transparent and communicate clearly to the public on the global financial crisis that is unraveling with the US financial slump.

"Dapat alam ng publiko ang lahat ukol sa global financial crisis, lalo na ang tungkol sa 'exposure' ng lokal na merkado, posibleng epekto sa lokal na ekonomiya, at kung ano ang dapat gawin ng gobyerno para protektahan ang kanilang mga kabuhayan at naipon sa bangko," he said.

"The people should be kept in the loop. Lack of information only causes uncertainty among the public. As long as the BSP and DOF communicate clearly with the people--from sophisticated investors to ordinary depositors--we are containing speculation," he said.

The Chairman of the Senate Committee on Trade and Commerce said that more importantly, the government's economic managers must buckle down and take stock of any impact of the financial crisis on the real economy, which may happen within a few months unless plans to plug these are put in place.

He added the BSP and the SEC should be on the lookout for any sharp movements in the trading sector to ensure that the global financial crisis does not impact heavily on the local financial sector.

"Ngayon pa lang, simulan nang tukuyin ng gobyerno ang mga sektor na posibleng maapektuhan. Katulad ng presyo ng langis at pagkain, kita ng mga OFW at kabuhayan ng mga nasa export sector, na maaaring maapektuhan ng paggalaw ng dolyar," he said.

"Dapat maging mabilis ang aksyon ng pamahalaan para sa kapakanan ng bayan," he said, stressing that it is imperative that the government set up short, medium and long term fiscal reform programs to soften the effect of expected aftershocks of the American financial meltdown.

Roxas said that instead of panicking or taking imprudent actions, the government and private sector institutions should take this challenge as an opportunity to plan strategically for the future.

"We already know that global markets are changing in an increasingly dynamic and interconnected way. We all now that we cannot be in 'business-as-usual' mode forever," he said.

Philippine share prices opened sharply on Tuesday following reports that US lawmakers have rejected a proposed $700 billion bailout plan for the financial industry. The peso has dropped to the P47:$1 level, and the BSP has reportedly intervened to help stabilize the peso upon hitting P47.40:$1.

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