NEWSFLASH

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WEAKENED YEN REDUCES RP DEBT BY $527 MILLION

Manila, May 30, 1998 - As a result of the depreciation of the Yen vis-a-vis the US dollar, the dollar equivalent of the Philippines' Japanese yen loan obligations went down by $527 million as of May 28 this year from its December, 1997 level of Y1.338 trillion valued at $10.26 billion.

According to Bangko Sentral ng Pilipinas governor Gabriel Singson, the development is significant because around one third of the country's total foreign obligations are denominated in the Japanese currency.

He noted that last March, the exchange rate was Y131.926 to the dollar, and that had reduced the dollar value of our yen loans by $119 million.

He said the peso has retained much of its strength at present, an indication of the relative success of the country's countermeasures in the light of the currency crisis in the region.

He expects the economy to hit its normal stride soon "on the basis of many reforms already in place plus more reforms that are planned under the new administration."

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