HOT MONEY POSTS DROP AT THE HEIGHT OF 'GLORIAGATE'
MANILA, July 18, 2005 (BULLETIN) By Maricel E. Burgonio, Reporter - FOREIGN investments in the stock exchange, government securities, among others, posted a significant drop during the first week of July, owing to allegations that President Arroyo cheated in the last election and that members of the her family, including a presidential brother-in-law, were among the recipients of payoffs from an illegal numbers game.
Bangko Sentral ng Pilipinas Governor Amando M. Tetangco Jr. said the government securities registered a net outflow of $50 million while only posting a net inflow of $28 million in the first week of July.
“For one week, the portfolio investments decreased to negative $58 million,” Tetangco said.
During the same period, BSP data also indicated that net inflows, worth $71.4 billion, were lower than the outflows which reached $130.1 billion.
However, the total net portfolio investment has improved to $1.878 billion in January to first week of July this year compared with last year.
In 2004 net portfolio investments only amounted to $486.8 million. In 2005 the BSP expects net portfolio investments to reach more than $3 billion due to improvement in economic fundamentals and fiscal reform.
However, the suspension of the new value-added tax law has made investors doubt whether the government could still accelerate its fiscal consolidation program.
Reported by: Sol Jose Vanzi
© Copyright, 2005
by PHILIPPINE HEADLINE NEWS ONLINE
All rights reserved
PHILIPPINE HEADLINE NEWS ONLINE [PHNO] WEBSITE