SECOND TETANGCO TERM GOOD FOR FINANCIAL SYSTEM - PURISIMA
(PHOTO - CENTRAL BANK GOVERNOR AMANDO TETANGCO, JR)
MANILA, JANUARY 29, 2011 (STAR) By Iris C. Gonzales – The reappointment of Bangko Sentral ng Pilipinas Governor Amando Tetangco Jr. as the country’s chief monetary officer for another six years bodes well for the country’s financial system, Finance Secretary Cesar Purisima said yesterday.
“This is a home run,” Purisima said, noting that Tetangco’s reappointment will provide continuity and stability in the management of the country’s financial system.
Tetangco on Thursday night said that he had accepted President Aquino’s offer for a second term in the BSP. His current term ends on 2017.
Government sources said Purisima was “instrumental” in the plan to reappoint Tetangco, who was appointed BSP Governor in July 2005 by President Arroyo.
Tetangco’s term ends in July and various names have floated earlier into the term of the Aquino administration. These include Aurelio Montinola III, chief executive officer of Ayala-led Bank of the Philippine Islands (BPI) and Deputy Governors Nestor Espenilla Jr. and Diwa Guinigundo.
Presidential spokesperson Edwin Lacierda said that Tetangco formally accepted President Aquino’s offer in a meeting with Purisima on Thursday afternoon.
Lacierda said Tetangco’s reappointment would ensure continuity in the fiscal policies of the government.
Tetangco, 59 years old, has been with the BSP since 1974, rising from the ranks to the top position, following the term of Rafael Buenaventura.
Global debt watchers and analysts have credited Tetangco for leading a central bank that helped contain inflation and grow the economy at an average of 4.5 percent over the past six years.
During the global financial crisis that struck in late 2008, the BSP used monetary tools to address the impact of the crisis. It has kept policy rates at four percent for the overnight borrowing rate and six percent for the overnight lending rate in a bid to help cushion the economy from the impact of the crisis.
On the banking side, Tetangco’s term saw how the Legacy mess unfolded. The BSP had to close 12 rural banks under the Legacy Group owned by businessman Celso de los Angeles who is already in jail for estafa and criminal offenses.
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