PRRD’s economic team hailed for latest PH credit rating upgrade

FILE: Finance Secretary Carlos Dominguez III at the 51st Asian Development Bank Annual Meeting on May 25, 2018 (Photo: Department of Finance/Facebook)

MANILA — Malacañang on Thursday hailed President Rodrigo Duterte’s economic team for the upgrade by Standard and Poor (S&P) of Philippines’ investment grade credit rating to ‘BBB+’, the highest credit rating in the country’s economic history conferred by the respected economic think tank.

Presidential Spokesperson Salvador Panelo said the Palace is pleased by the report, stressing that a higher credit rating means a borrower country can have access to a wider pool of funds.

“The economic team of the President has done a splendid job in putting the economic house in order and spearheading bold economic reforms, in cooperation with Congress, in bolstering the domestic economy, which is projected to become the world’s top 25 economy,” Panelo said in a statement.

Among these economic reforms are tax reform, liberalization of the rice sector, strengthening of the Bangko Sentral ng Pilipinas’ charter, ease of doing business, relaxing the foreign investment negative list and modernizing infrastructure, among others, Panelo said.

Panelo, meanwhile, emphasized that the President recognizes the importance of a “thriving economy” to help make Filipinos’ lives more comfortable by providing them with more jobs.

“The President understands that a thriving economy under an environment free from drugs, crime and corruption is essential to bring our people to a life which is comfortable and secure,” Panelo said.

“His actions based on this belief have thus promoted our country’s standing not just in peace and order but also in terms of our economy,” he added.

S&P upgraded the Philippines’ investment grade credit rating to ‘BBB+’ attributing the country’s “strong economic growth trajectory”.

It also noted that the domestic economy is among the fastest growing in the world on a 10-year weighted average and on per capita basis.

Earlier, Finance Secretary Carlos Dominguez III attributed the upgrade to Duterte’s leadership and his 10-Point Economic Program.

The 10-point agenda bids for the continued implementation of macroeconomic policies, institution of progressive tax reform program and more effective tax collection, increase of the country’s competitiveness and ease of doing business, increase in public spending on infrastructure, and promotion of rural and value chain development.

Dominguez said the upgrade also “means that the bonds we issue will attract more investors at interest rates lower than what we are currently paying, saving millions of pesos for the Filipino taxpayers.”