MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) has upgraded its debt management and monitoring system with the adoption of the United Nations Conference on Trade and Development’s (UNCTAD) debt management and financial analysis system or DMFAS as part of its pro-active policy in controlling external debt.
The BSP said that the DMFAS is expected to improve its statistical infrastructure, systems and processes. “The initiative is considered timely in the face of sovereign debt problems in the euro zone and the US,” said the BSP. “(The Philippines) is expected to benefit from the system in further improving its debt profile given its healthy level of reserves, a well-spaced debt maturity structure, and a diversified mix of fund sources.”
Before the DMFAS, the central bank has its in-house debt monitoring system called the Integrated External Debt Management System or IEDMS which it has been using for 18 years. But, it said, the “rapidly changing financial landscape, coupled with the emergence of sophisticated financial instruments, as well as the increasing integration and linkages among economies, have heightened the demand for more detailed, current and comprehensive information on, and analysis of, external obligations.”
With the use of the DMFAS, the BSP explained that the new system will enhance the recording, monitoring and generation of external debt data, as well as improve compliance with international reporting standards. The system is also being used by 69 other central banks and finance ministries across the globe.
BSP Governor Amando M. Tetangco Jr. said that so far, the central bank has been successful in its debt management efforts.
Tetangco cites key ratios such as gross international reserves to short-term debt, outstanding debt to gross national income and debt service to foreign exchange receipts as “consistently strengthened” which for him, indicated the country’s “sustained and improving ability to meet maturing obligations.”
For 2012, the BSP has set a limit of $8.5 billion that both public or government and private sector or corporates can borrow in foreign currencies. This is lower compared to 2011’s foreign borrowing ceiling of $10.5 billion but the higher cap was because last year, the BSP was expecting more loans to fund Aquino government’s public-private partnership infrastructure projects.
The BSP and the government sets internal annual debt ceiling to monitor foreign borrowings from commercial sources, syndicated loans or from official development assistance or ODA funds.
source: mb.com.ph
