Press Release
November 11, 2008

ANGARA LAYS DOWN TOP-PRIORITY ECONOMIC REFORM MEASURES

Sen. Edgardo J. Angara today identified key financial reform measures geared towards achieving a better position amid the continuing Global Financial Crisis, as Senate resumes its session,

"As Senate resumes today, we should do away with the business-as-usual mood in order to prep up our country's stand amid these bad times. We should do our homework and continue enacting financial reforms that can buttress our country's position amid this global financial crisis" said Angara who chairs the Senate Committee of Banks, Financial Institutions and Currencies.

He added, "Multilateral talks and negotiations coupled with our Government's action would bail the country out of the devastating consequences of the credit crunch."

Financial reform laws authored by Angara (the Personal Equity Retirement Account (PERA) and the Credit Information System) were cited as main factors contributing to the country's resilience amid the crisis.

"There are, however, other reforms that we look forward to, namely the increase in deposit insurance coverage, amendment of Bangko Sentral ng Pilipinas' charter, Corporate Insolvency Law, Mutual Fund Act and the establishment of a Real Estate Investment Trust." said Angara.

Angara filed S.B 2687 which seeks to amend the charter of Philippine Deposit Insurance Corporation (PDIC) in order to increase its maximum deposit insurance coverage from P250,000 to P500,000.

Amending BSP's charter will authorize the Central Bank to extend its supervision to subsidiaries and affiliates.

On the other hand, amendment of the bankruptcy law, which was passed way back in 1909, will expedite the bankruptcy process rather than lock up in court, make assets idle, throw people out of jobs and make creditors hold on empty bags.

Amending the Mutual Fund law seeks to keep pace with the mutual fund industry which has modernized and progressed in the past years.

The enactment of the Real Estate Investment Trust bill will provide the country's REIT framework wherein people can invest in income generating real estate assets,

"Through these reforms the country will be placed in a better position to be able to absorb shock from this credit crisis and financial turbulence," said Angara.

He also added that his Committee on Banks, Financial Institutions and Currencies will continue to monitor developments on the global financial crisis.

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