Manila feels effects of Greek debt crisis

Wikipedia Photo

MANILA — Effects of the Greece debt crisis are now being felt in Philippine financial markets.

On the eve of June 30, the Philippine Stock Exchange (PSE) lost 54.67 points or 0.072 percent and closed at 7,567.38.

June 30 was the last day given to Greece to strike its bailout package with creditors. This is for the country to avoid defaulting debts to the  International Monetary Fund (IMF).

The peso-dollar exchange rate also shed 10.50 centavos with the peso closing at 45.190 against the US dollar from Friday’s close of 45.085.

Governor Amando M. Tetangco Jr. of the Bangko Sentral ng Pilipinas (BSP) earlier told the Philippine Daily Inquirer that the Greek debt crisis “may cause volatility in financial markets, as some participants shy away from positions until there is clearer direction on the next steps in the European Union.”

He however added that the country may still be able to weather the crisis just as it did in the past years.

“Asian emerging market economies may be affected… but there is fundamental robustness in domestic economies, including in the Philippines, that should help shield us from any fallout,” Tetangco said in a text message to the Philippine Daily Inquirer.