MANILA, June 4 (PNA) — The Philippine government has assured Japanese companies planning to invest in the country’s infrastructure projects that there are enough funds to support such developments.
During an investment forum here Thursday, President Benigno S. Aquino III was asked about financing, once Japanese companies consider building infrastructure projects in the Philippines.
In response, Finance Secretary Cesar Purisima said the Philippines has achieved macroeconomic stability as a result of the President’s good governance initiative.
The country’s central bank has also contributed to this stability, owing to its efficient management, Purisima said.
“We have also been able to increase the capacity of the local banking system. As a result, the single borrower’s limit of banks was temporarily extended and at the same time with their increasing sizes, we were able to accommodate more infrastructure projects,” he told Japanese businessmen at the forum, held at the Hotel New Otani here.
“Nevertheless the president has also decided to open up more bridges to investment from abroad,” he added.
The government has also liberalized the banking system, he said, noting that it has so far approved the entry of four foreign banks — the first being the Sumitomo Bank of Japan and three others from South Korea and Taiwan.
The entry of these foreign banks should offer additional financing access for infrastructure projects, Purisima said, adding that the Government Service Insurance System (GSIS) has linked up with a foreign fund to engage in infrastructure financing.
“So far, we have not seen any issues in terms of funds,” he said.
As the government launches more public-private partnership (PPP) projects, Purisima said it is also looking into the possibility of issuing infrastructure and insurance bonds for the purpose of infrastructure development.
In case of currency mismatch between company financing and revenue flow for local infrastructure, he said there are locally available facilities, including those from the government, which can be utilized to address the concern. (PNA)