BSP PREPARES NEW SET OF ECONOMIC ASSUMPTIONS
MANILA, October 17, 2005 (STAR) By Donnabelle L. Gatdula - The Bangko Sentral ng Pilipinas (BSP) is preparing a new set of macroeconomic assumptions for 2006 for the consideration of the inter-agency Development Budget Coordinating Council (DBCC), a ranking monetary official said.
BSP deputy governor Diwa Guinigundo said the new assumptions will take into consideration the possible impacts of the continuing high oil prices and implementation of expanded value-added tax (EVAT).
"We will present out new targets in a meeting with DBCC on Oct. 21," Guinigundo said.
BSP Governor Amando Tetangco said they have decided to maintain the inflation range target of 7.6 percent to 7.9 percent and balance of payments (BOP) surplus projection of $853 million.
The country’s top monetary official said, however that they may change their figures for certain components of the BOP such as the exports, overseas Filipino workers (OFWs) remittance, imports and capital accounts.
Guinigundo believes the surplus target for the country’s BOP would be surpassed. "We will likely exceed it (BOP will target for 2005," he said.
The BSP reported a $2.7-billion BOP surplus for the period January to September 2005.
"While it is lower than $2.7 billion, it will breach the $853-million target.
Guinigundo said they expect some debt repayments for the rest of year from both the National Government and the BSP which will have an impact on the BOP position.
"Under the capital and financial account of the BOP, we would get debt servicing requirement of NG and BSP," he said.
The BSP needs to pay $800-million maturing loans next month. It had raised some $500 million recently through syndicated loan. The remaining $300 million will likely be sourced from its dollar reserves.
He said there would also be some slight changes in the current account figures with the noted decline in exports with the global easing of economic growth of the country’s trade partners.
BOP systematically summarizes, for a specific time period, the economic transactions of an economy with the rest of the world.
Chief News Editor: Sol Jose Vanzi
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