NEWSFLASH

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IMF URGES AUTOMATIC OIL PRICE ADJUSTMENT

Manila, Dec. 19, 1997 - The International Monetary Fund has asked the Philippine government to allow automatic adjustments in oil prices under the proposed new oil deregulation law.

At the same time, the IMF warned against the restoration of subsidies to the oil sector, stressing that it would put pressure on the economy once the country exits from the IMF-sponsored borrowing program.

The IMF position was revealed by Bangko Sentral governor Gabriel Singson, who said the IMF wants these proposals incorporated in the new oil deregulation law "in order for us to exit from the IMF on a secure footing."

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