NEWSFLASH

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JAPAN CRISIS HAS LITTLE EFFECT ON RP

Manila, April 22, 1998 - Finance Secretary Salvador Enriquez yesterday assured that the Japanese financial crisis will not significantly affect the Philippine economy.

Enriquez was reacting to fears that Japan's economic difficulties will eventually spread to the Philippines wince it is the country's biggest market as well as source of investments and loans.

"The assumption of the collapse of Japan 's economy is not a very objective assessment of the situation. Japan, I think, will do what is necessary to solve its problems," Enriquez said.

Earlier, Monetary Board Member Cayetano Paderanga said Philippine exports to Japan will possibly be affected. Japan absorbs about 20 percent of Philippine exports.

But Enriquez downplayed Paderanga's prediction, as he pointed out that Japanese imports from the Philippines are mostly raw materials needed by their industries.

"They (the Japanese) will afford to pay whatever is the price for materials needed for their factories. We should not worry about that," Enriquez explained.

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