Press Release
June 2, 2010

Angara urged more structural reforms in the financial market and taxation to ensure resilience in RP's financial system

As the once-mighty euro continues to slide down, financial experts and government leaders are becoming worried that a full-blown economic crisis could grip the continent over the coming months Senator Edgardo J. Angara today said that we need more structural reforms in the financial market and taxation to ensure that our financial system remains resilient.

"The euro crash was prompted by fears over Greece's mounting external debt, as well as Spain and Portugal's troubled banking system. This unsettling new challenge comes after many economists thought the global financial crisis was over and that the world was finally - albeit slowly - recovering from the recession," said Angara who chairs the Senate Committee on Finance.

Further, Angara explained that as the international financial markets who continue to face stress, should serve as a reminder to us of the need to implement our own financial reforms.

"Emerging economies like the Philippines remain vulnerable to spillover effects of any downturn experienced by other regions," he added.

In the Senate, Angara lead the passage of the Credit Information System Act to help lessen the risk of banks and make credit more available as well as the Personal Equity And Retirement Account (PERA), a supplementary private retirement plan, that will promote long-term savings and promote capital market development.

"I continue to push for the BSP charter amendments for stronger prudential supervision, as well as the Collective Investment Schemes Law to update the mutual fund law," Angara stressed.

Moreover, The Business Recovery and Insolvency Act (BRIA), which was passed, will modernize the insolvency law and make rehabilitation easier for troubled companies and the Real Estate Investment Trust (REIT) to inject liquidity and stability to the property market. In addition, the Pre-Need Code will provide the regulatory framework to this important financial subsector and lastly the Philippine Deposit Insurance Corporation (PDIC) charter to expand and extend its protection to bank depositors, and the Pagibig charter to increase its housing loan capacity.

"Expect your Congress to pass more laws that will make the country resilient to the effects of global recession and gear the country to have a more structured and more responsive scheme that will address the pressing economic needs of the Filipino people," said Angara.

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