NEWSFLASH

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MACAPAGAL OFFERS BALANCE OF PAYMENTS SOLUTION

Manila, Oct. 13, 1997 - Senator Gloria Macapagal-Arroyo is proposing a two-pronged approach to improve the quality of the country's balance of payments, which showed a negative position for the fist six months of 1997.

Macapagal-Arroyo's plan calls for:

1. The reduction or reversal of the growing balance or trade deficit, or exports less imports, by developing a strong internationally competitive manufacturing base

2. Encouraging more foreign direct investments.

The senator, a trained economist, said, "We have been covering the BOT deficit by portfolio investments and funds coming from fund managers; we have to reduce the volatility risks of such strategy."

Government data released last week showed exports growing by 23% for the first 8 months of the year. Import-dependent electronics and garments sectors were the country's two largest export earners.

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