PHILIPPINES: MANILA TO HOST MAJOR REGIONAL FINANCE MEETING

Описание: (17 Nov 1997) English/Nat

The Philippines will host a major regional finance meeting Tuesday to discuss a proposal for a special Asian fund designed to help countries in the region experiencing economic difficulties.

While nothing is expected to be finalised on this round of talks, it will be the first formal discussion about the proposed Asian Fund.

The Philippines - one of the advocates for the Fund's creation - is one of several Southeast Asian nations rocked by a currency crisis this year.

The currency crisis that hit economies in Asia this year has not spared the Philippines - a country which up until then had enjoyed enviable rates of economic growth.

On Tuesday, Manila will host a gathering of deputy finance ministers from the U-S and around the region to discuss a proposal to create a special Asian fund which would alleviate the effects of the currency turbulence.

SOUNDBITE: (English)
"We have been exploring the idea of a facility or a credit line or a mechanism rather than a set fund which can be drawn upon when the need arise."
SUPER CAPTION: Roberto de Ocampo, Philippine Finance Secretary

The Philippines has taken the lead in hosting the Asian Fund meeting because it will chair the Association of Southeast Asian Nations, or ASEAN, in 1998.

Like three other ASEAN members - Thailand, Indonesia and Malaysia - the Philippine economy took a turn for the worse when the currency crisis hit.

Its stock market hit record lows and the local peso tumbled, falling by as much as 26 per cent against the U-S dollar.

While after-effects of the crisis are still lingering, Manila officials express confidence that the country will get back on track - perhaps even sooner than its neighbours.

They say that, before the currency crisis, the Philippine economy was growing at a more regulated pace than that of Indonesia or Thailand.

SOUNDBITE: (English)
"I think part of the reason is good fortune in a sense, the good fortune of having bad fortune in the past. Because we were delayed in terms of being a tiger economy, in a sense, we ended up avoiding the kind of bubble that, sometimes described by economists, the kind of bubble in real estate and other sectors, that was bound to burst sooner or later."
SUPER CAPTION: Roberto de Ocampo, Philippine Finance Secretary

Before the currency turbulence, the peso was trading at 26 to the U-S dollar, but at its worse, it went to as low as 35.

Yet while the situation may have appeared alarming, officials here had no doubts that the country will get back in shape.

SOUNDBITE: (English)
"I was very confident that we will survive and we will....this storm, this currency storm will pass without very much damage to the country."
SUPER CAPTION: Gabriel Singson, Governor, Central Bank of the Philippines

The private banks, which Singson has said need to tighten their credit facilities, agree that the Philippines will cope well.

SOUNDBITE: (English)
"Basically, we have a strong banking system. I think we can weather the crisis."
SUPER CAPTION: William Tiosic, CEO, Pilipinas Bank

While forecasts are good, some sectors may still flounder as the country works its way through the crisis.

One of those greatly affected by the volatility of the peso was the automotive industry.

Foreign car manufacturers were left with no choice but to increase prices, and therefore are facing a slow down in sales.

However they, too, feel that the situation is only temporary.

SOUNDBITE: (English)
SUPER CAPTION: Koji Miyajima, President and General Manager, Honda Cars Philippines


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