RP in better shape to face global crisis, says Angara

The Philippines is in a better shape to face the current global financial crisis because of reforms that have been put in place to strengthen the local financial environment, Sen. Edgardo Angara said.

Angara said the measures creating the Personal Equity Retirement Account and the Credit Information System which he authored have been cited by monetary and banking officials as helpful in making the country resilient amid the global crisis.

PERA is envisioned to complement the existing state-run pension funds by encouraging savings among government and private sector employees. The Credit Information System, meanwhile, seeks to help boost lending in the country by providing information on borrowers.

However, Angara said there are still a lot of reforms needed to further strengthen the financial system.

“There are, however, other reforms that we look forward to, namely the amendment of Bangko Sentral ng Pilipinas’ charter, Corporate Insolvency Law, Mutual Fund Act and the establishment of a Real Estate Investment Trust,” said Angara

He said amending the central bank’s charter would authorize the monetary institution to extend its supervision to subsidiaries and affiliates.

On the other hand, he said the amendment of the bankruptcy law, which was passed way back in 1909, will expedite the bankruptcy process rather than lock up in court, make assets idle, throw people out of jobs and make creditors hold on empty bags.

Amending the mutual fund law seeks to keep pace with the mutual fund industry which has modernized and progressed in the past years.

The enactment of the Real Estate Investment Trust (REIT) bill will provide framework wherein people can invest in income-generating real estate assets, Angara added.

“Through these reforms the country will be placed in a better position to be able to absorb shock from this credit crisis and financial turbulence,” said Angara.

He also added that the Senate Committee on Banks, Financial Institutions and Currencies, which he chairs, will continue to monitor developments on the global financial crisis. – Iris C. Gonzales