Press Release
January 20, 2009

ANGARA CITES THREE KEY FISCAL REFORM MEASURES FOR A STRENGHTENED RP FINANCIAL SECTOR

Senator Edgardo J. Angara today said that the swift passage of three major financial reform measures would help push and build up the capital market and strengthen the financial sector of the country in the advent of the global financial crisis.

These financial reform measures include the passage of the budget oversight commission, PAG-IBIG bill and the new PDIC Charter.

"By strengthening the financial system, capital markets are built up, and more businesses will thrive, thereby broadening the government's tax revenue base. Only then will our country's fiscal position truly improve and stabilize," explained Angara, who chairs Senate Committee on Banks, Financial Institutions and Currency.

Last night, the amended Philippine Deposit Insurance Corporation (PDIC) charter was unanimously approved by the Senate on third and final reading, via a roll-call vote of 13-0. The bill seeks to raise maximum insurance coverage of PDIC from P250,000 to P500,000 and was certified as urgent due to the precarious effect of the global financial crisis.

"With the passage of the amended PDIC charter, public confidence to the local banking system will be regained and further increased despite the fact that the crisis is still around the corner," said Angara, who principally sponsored the bill.

Meanwhile, the budget oversight commission will monitor and keep a critical eye on the proper expenditure on projects and programs of the various departments of the government to ensure that limited resources are spent wisely and prudently especially during these tough times.

Moreover, another step to weather the global financial crisis is through the passage of the amendments to the Home Development Mutual Fund or the Pag-IBIG Fund Law. A strong housing sector and integrated nationwide provident savings system will yield national economic benefits.

By amending the PAG-IBIG law, we now help weather the Financial Crisis by giving it a much needed lift in order to be an instrumental institution for housing credit," Angara said.

The new Pag-Ibig Charter, as encompassed in the Committee report, proposes three (3) key amendments: (1) restoration of the tax exemption privilege of Pag-IBIG Fund; (2) grants power to Pag-IBIG Board of Trustees to set contribution rates and; (3) adoption of a compensation plan for employees comparable to the ones prevailing in the private sector.

"We hope to achieve if not surpass the said feat in 2009. With some reforms already in place and other financial reform bills lined up, I am looking forward to a more stable, healthier financial system this year," said Angara.

In the previous years, Angara successfully pushed for major financial reform measures such as the Pre-Need Code, Personal Retirement Equity Act, the Credit Information System Act, and the extension of the Agricultural Competitiveness Enhancement Fund, among several.

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