RP urged to honor contracts

The US Export-Import Bank is urging the Philippine government to improve the business climate by "honoring existing contracts" and implementing reforms which the government has already considered.

Eximbank is the official US export credit agency that has supported $400 billion worth of US exports to international markets. It is also involved in export credit insurance, guarantees, commercial loans, and structured and project finance.

In a press briefing, Eximbank vice chairman April H. Foley told reporters that they have been urging business communities and governments in the Asia Pacific region "to improve the climate of opportunity, and to reduce trade barriers."

"It is about honoring contracts, it is about having a strong legal system, it is about having a judicial system that upholds the law of a country," Foley said.

The bank official pointed out that the Philippines should not only initiate reforms. "It is important that the reforms are enacted. That the enactment is upheld by the judicial system," she said. These include respecting property rights, intellectual property rights, enforcing strong corporate governance, adhering to international standards of accounting, and fighting corruption.

Aside from the enactment of wide-ranging reforms, the country must have the political will to enforce the reforms through laws "and actually enact them on the day-to-day life of the people," she added.

The official stressed, however, that the message is not only applicable to the Philippines but to most of the countries it had visited or have existing transactions with.

Foley said that those progressive or competitive countries had taken the mandate for improving the climate of opportunity very seriously.

"They have made the tough decisions, they have acted with responsibility and discipline, they have withstood the popular outcry, and they have taken the long-term point of view,"she said. "Yes, it hurts when you get serious about these reforms, but the pay-offs in the long term is real."